If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

a) 470,000 pounds

b) 350,000 pounds

c) 530,000 pounds

d) 290,000 pounds

b) 350,000 pounds

Explanation:

The computation of the number of pounds purchased is shown below:

= Required production in January month + ending inventory in pounds - beginning inventory in pounds

= 410,000 pounds + 120,000 pounds - 60,000 pounds

= 350,000 pounds

We simply added the ending inventory and deduct the beginning inventory to the required production so that the accurate amount can come