Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and...
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Accounting
Sarafiny 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) | 27,000 | 37,000 |
| Raw material (grams) | 57,000 | 47,000 |
Each unit of finished goods requires 2 grams of raw material. The company plans to sell 220,000 units during the year.
How much of the raw material should the company purchase during the year?
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