Ardel Co. budgeted to sell 200,000 units of Zbox in September. Production of one unit of Zbox requires two pounds of aluminum and five pounds of steel powder. The beginning inventory and the desired ending inventory are as follows:How many pounds of aluminum powder does Ardel Co. need to purchase during September if Ardel plans to manufacture 150,000 units of Zbox in September?

Question

Quizplus · Accepted Answer

To produce 150,000 units of Zbox, Ardel Co. will require:

150,000 units * 2 pounds aluminum per unit = 300,000 pounds of aluminum powder

Therefore, Ardel Co. needs to purchase 300,000 pounds of aluminum powder during September.

Ardel Co Budgeted to Sell 200,000 Units of Zbox in September