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How much of the raw material should the company purchase

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Question - Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

 

Beginning Inventory

Ending Inventory

Finished goods (units)

70,000

20,000

Raw materials (grams)

50,000

60,000

Each unit of finished goods requires 3 grams of raw material. The company plans to sell 880,000 units during the year.

How much of the raw material should the company purchase during the year?

2,550,000 grams

2,490,000 grams

2,480,000 grams

2,500,000 grams

Reference no: EM131776053

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