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Garry's Corporation's most recent production budget indicates the following required production:

October November December
Required Production (units) 210,000 175,000
110,000

Each unit of a finished product requires 5 pounds of raw materials. The company maintains raw materials inventory equal to 25% of the next month's expected production needs.

How many pounds of raw material should Garry plan on purchasing for the month of November?

A. 893,500

B. 793,750

C. 1,006,250

D. 1,012,500

Respuesta :

The number of pounds of raw material should Garry plan on purchasing for the month of November is option b $793,750

  • The calculation is as follows:

Production 175000

Multiply with Raw material needed / Unit 5

RM for NOV production 875000

Add: Desired ending Inventory 137500

Less: Available Beginning Inventory 218750

Planned purchases for NOV 793750

Learn more: https://brainly.com/question/1022920

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