Swifty Corporation required production for June is 42000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 210000 and 240000 pounds, respectively. How many pounds of direct material Z must be purchased?

Purchases = 156,000 pounds

Explanation:

Giving the following information:

Swifty Corporation required production for June is 42000 units.

Standard quantity = 3 pounds per unit.

Beginning inventory = 210,000 pounds

Desired ending inventory = 240,000 pounds.

To calculate the purchases, we need to use the following formula:

Purchases = production + desired ending inventory - beginning inventory

Purchases = 42,000*3 + 240,000 - 210,000

Purchases = 156,000 pounds