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A company requires 220 pounds of plastic to meet the production needs of a product. The beginning inventory is 70 pounds, and the desired ending inventory is 25 pounds. How many pounds of plastic should be budgeted for purchasing during the coming period?

A. 195 pounds
B. 265 pounds
C. 245 pounds
D. 290 pounds
E. 175 pounds

Answer :

Answer:

C. 245 pounds

Explanation:

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

Number of pounds purchased = Material required for production - beginning inventory + desired ending inventory

= 220 pounds - 25 pounds + 70 pounds

= 265 pounds

We simply applied the above equation so that the number of pounds purchased could arrive

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