Hello Hend,
My thinking:
I think the 'use in that period' wording may be tricky. You can use the sell unit to plan production then estimate material purchases, but it's a waste of time.
From estimated sales, we determine production needs; from this minus inventory on hand plus whatever they want to have on hand, we determine purchases required.
They want to know cost of purchases for the 3 months:
Given: Plan to produce 600,000 units in the 3 months. This requires 2,400,000 pounds of material. It also wants to have 25% of the 'use in that period'. They already have 800,000 pounds in inventory, so I think they only 'use (produce)' 1,600,000 pounds. 25% of 1,600,000 = 400,000 pounds.
Cost/Purchases for the 3 months:
2,400,000 needed for planned production
+ 400,000 pounds to have in hand
- 800,000 beginning inventory
-----------------
2,000,000 pounds needed to purchase
* $1.20 each pound
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$2,400,000 purchase cost during 3 month period.
Is this the answer?
Thank you and best regards,