A company requires 220 pounds of plastic to meet the production needs of a product.It currently has 25 pounds of plastic inventory.The desired ending inventory of plastic is 70 pounds.How many pounds of plastic should be budgeted for purchasing during the coming period?

Question

Quizplus · Accepted Answer

Pounds of plastic to be budgeted for purchasing during the coming period = Required inventory of plastic for production + Desired ending inventory of plastic - Current inventory of plastic
Pounds of plastic should be budgeted for purchasing during the coming period = (220 pounds + 70 pounds - 25 pounds ) = 265 pounds

A Company Requires 220 Pounds of Plastic to Meet the Production