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Bramble Corp's required production for June is 172,000 units. To make one unit of finished product, three pounds of direct material Z are required. The actual beginning and desired ending inventories of direct material Z are 165,000 and 195,000 pounds, respectively.

How many pounds of direct material Z must be purchased?

A. 528,000
B. 498,000
C. 546,000

Answer :

Final answer:

To calculate how many pounds of direct material Z must be purchased, we add the total material required for production and the desired ending inventory, then subtract the beginning inventory. In this particular case, Bramble Corp needs to purchase 546000 pounds of direct material Z.

Explanation:

To find out how many pounds of direct material Z must be purchased, we first need to calculate the total pounds needed to meet production. Given that Bramble Corp requires 3 pounds of direct material Z to produce one unit, and they aim to produce 172000 units in June, the total material required would be 3*172000 = 516000 pounds.

Next we need to consider the desired ending inventory of 195000 pounds. This is additional material that Bramble Corp wants to have on hand at the end of the month. So, we add this to our previous number, 516000 + 195000 = 711000 pounds.

Last, we subtract the beginning inventory of 165000 pounds from our total. Bramble Corp already has this amount and they will not need to purchase it. Subtracting 165000 from 711000 leaves us with 546000 pounds. Therefore, Bramble Corp must purchase 546000 pounds of direct material Z.

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