Question

A company requires 220 pounds of plastic to meet the production needs of a product. It currently has 25 pounds of plastic inventory. The desired ending inventory of plastic is 70 pounds. How many pounds of plastic should be budgeted for purchasing during the coming period

Answer 1

They need 220 and want 70 for inventory for a total of 290 pounds.

They have 25, so they need: 290-25 = 265 pounds.