Answer :
Waterway Industries needs to purchase 546,000 pounds of direct material Z for their June production, accounting for beginning and ending inventory levels.Therefore the correct answer is C
The question revolves around the calculation of the quantity of direct material Z that must be purchased by Waterway Industries for their production requirements in June. The company's production target is 172,000 units, and each unit requires three pounds of direct material Z. Given the actual beginning and desired ending inventories, we can calculate the necessary purchase quantity as follows:
- Total material needed for production = Number of units imes Pounds per unit = 172,000 units imes 3 pounds/unit = 516,000 pounds
- Net material required = Total material needed - Beginning inventory + Ending inventory = 516,000 pounds - 350,000 pounds + 380,000 pounds = 546,000 pounds
Therefore, Waterway Industries must purchase 546,000 pounds of direct material Z. The correct answer is option c. 546,000 pounds.