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Sheffield Corp. required production for June is 232000 units. To make one unit of finished product,...

Sheffield Corp. required production for June is 232000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 400000 and 410000 pounds, respectively. How many pounds of direct material Z must be purchased?

696000.
706000.
700000.
690000.
0 0
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Answer #1

Units to be purchased

= Budgeted production + Desired ending inventory - Beginning inventory

= (232,000*3) + 410,000 - 400,000

= 706,000

Option B is the answer

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