Walman planning to purchase


Walman Company is budgeting sales of 42,000 units of product Y for March 19X3. To make  one product of Y, three kilograms of direct material A are required. Actual beginning and  desired ending inventories of direct material A and product Y are as follows.

March 1 March 31
Direct material A 100,000 Kg 110,000 Kg
Product Y 22,000 units 24,000 units

There is no work in process inventory for product Y at the beginning and end of March. For the month of March, how many kilograms of direct material A is Walman planning to purchase?

a) 126,000

b) 132,000

c) 136,000

d) 142,000

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Accounting Basics: Walman planning to purchase
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