If there were 70,000 pounds of raw materials on hand on January 1, 140,000 pounds are desired for inventory at January 31, and 420,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?
A) 350,000 pounds
B) 560,000 pounds
C) 280,000 pounds
D) 490,000 pounds

Question

Quizplus · Accepted Answer

To calculate how many pounds of raw materials should be purchased in January, we need to determine the total amount of raw materials required for both inventory and production:

Total raw materials needed = desired inventory + required for production
Total raw materials needed = 140,000 + 420,000
Total raw materials needed = 560,000

Next, we need to subtract the amount of raw materials already on hand to determine how much needs to be purchased:

Raw materials to purchase = total needed - on hand
Raw materials to purchase = 560,000 - 70,000
Raw materials to purchase = 490,000

Therefore, the answer is D) 490,000 pounds.

If There Were 70,000 Pounds of Raw Materials on Hand