The Sutcliff Manufacturing Company manufactures a product called Zyklon. Each unit of Zyklon requires 2 kg of Zinses. The budget calls for production of 8000 units of Zyklon during the third quarter. The ending inventory of Zinses is forecasted at 3000 kg for the second quarter and 2000 kg for the third quarter. How many kilograms of Zinses must be purchased during the third quarter?

Question

Quizplus · Accepted Answer

First, we need to find out how much Zinses we need for the production of 8000 units of Zyklon. 
8000 units x 2 kg of Zinses per unit = 16,000 kg of Zinses

Next, we need to calculate the total amount of Zinses needed for production and ending inventory: 
Zinses needed for production = 16,000 kg 
Ending inventory for the second quarter = 3000 kg 
Ending inventory for the third quarter = 2000 kg 
Total Zinses needed = 16,000 kg + 2000 kg - 3000 kg = 15,000 kg

Therefore, the company must purchase 15,000 kg of Zinses during the third quarter. The correct answer is C.

The Sutcliff Manufacturing Company Manufactures a Product Called Zyklon