amount of direct material to be purchased (in pounds):

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Company X expects to sell 48,000 units of finished goods over the next period. The company has 20,000
units on hand at the beginning of the period and its managers want to have 28,000 units on hand at the end
of the period. To produce one unit of finished product, two pounds of direct materials are needed. The
Company has 200,000 pounds of direct material on hand and has budgeted for an ending direct materials
inventory of 220,000 pounds. What is the amount of direct material to be purchased (in pounds)?
O a. None of the given answers
О Б. 36,000
О с. 132,000
O d. 92,000
O e. 76,000
Transcribed Image Text:Company X expects to sell 48,000 units of finished goods over the next period. The company has 20,000 units on hand at the beginning of the period and its managers want to have 28,000 units on hand at the end of the period. To produce one unit of finished product, two pounds of direct materials are needed. The Company has 200,000 pounds of direct material on hand and has budgeted for an ending direct materials inventory of 220,000 pounds. What is the amount of direct material to be purchased (in pounds)? O a. None of the given answers О Б. 36,000 О с. 132,000 O d. 92,000 O e. 76,000
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