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
FIA Forums
Costing Analysis
11y ago#12000 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
Thanks
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