If there were 70,000 pounds of raw materials on hand on January 1, 140,000 pounds are desired for inventory at January 31, and 420,000 pounds are required for January production, how many pounds of raw materials should be purchased in January

The 490,000 pounds of raw materials need to purchased in January

Explanation:

Computing the pounds of raw materials need to purchased in January as:

Purchases required = Closing Inventory + Production requirements - Opening Inventory

where the amounts are as follows:

Closing inventory amounts to 140,000

Production requirement amounts to 420,000

Opening or beginning inventory amounts to 70,000

So, putting the values above:

Purchase required = 140,000 + 420,000 - 70,000

Purchase required = 560,000 - 70,000

Purchase required = 490,000 pounds