Uses of Gunpowder (Resident Evil 2 Remake)

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Handgun Ammo
Gunpowder x2

Shotgun Shells
Gunpowder + High-Grade Gunpowder (Yellow)

MAG Ammo
High-Grade Gunpowder (Yellow) x2

Acid Rounds
Gunpowder + High-Grade Gunpowder (White)

Submachine Gun Ammo
High-Grade Gunpowder (White) x2

There's not a lot of ammo left around the station, so make good use of any gunpowder you find.

Different guns require different ammo, so pay attention when you're combining things or you won't get what you need.