Any procurement of raw materials at the first period will become inventory at the second period, and therefore not available to support production with one exception.
When the production request/allocation exceeds what the inventory of raw materials can support, the additional raw materials needed to support the request/allocation will be taken from the procurement of raw materials for the next period.
i.e. the material purchasing quantity, and it is paid for on an “emergency purchase” basis, i.e. at a penalty price of $1.50 more per unit than the market price, so that they are delivered immediately for use in the production according to the production request/allocation.
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