Product X requires 1·8 kg of a raw material per finished unit. The material has a weight loss of 10% in preparation for manufacture. Inventory of the material is currently 420 kg but needs to be increased to 500 kg. 2,000 units of Product X are to be manufactured. How many kg of the raw material need to be purchased to satisfy the above requirements? A 3,880 B 3,920 C 4,040 D 4,080
2000 units have to be made. Assuming that the question means that each of these units weight 1.8kg, the total weight would be 3,600 and if that represents 90% of what you started with, you must have started with 3,600/0.9 = 4,000kgs.
An additional 80 kg is needed to increase inventory.
Therefore, the Kg that must be bought = 4,000 + 80 = 4,080