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How much of the raw material should the company purchase

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Reference no: EM132034190

Question - Sartain 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)

20,000

70,000

Raw materials (grams)

50,000

40,000

Each unit of finished goods requires 2 grams of raw material.

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

A. 1,430,000 grams

B. 1,450,000 grams

C. 1,480,000 grams

D. 1,440,000 grams

Reference no: EM132034190

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