Production of February = 11,115 units
Board feet per unit = 4
Board feet needed for production in February = Production units x Board feet per unit
= 11,115 x 4
= 44,460
Ending inventory in raw materials in January = 20% of production needed in February
= 44,460 x 20%
= 8,892 board feet
Production in March = 10,906 units
Board feet needed production in March = 10,906 x 4
= 43,624
Ending inventory of raw materials in February = 20% of production needs in March
= 43,624 x 20%
= 8,724.80
Ending inventory to raw materials in January is the beginning inventory of February.
Purchases in February = Board feet needed for production in February + Ending inventory of raw materials in February - beginning inventory of raw materials in February
= 44,460+8,724.80-8,892
= 44,293 Board feet
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Please solve.
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