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 InventoryEnding InventoryFinished goods (units)26,00076,000Raw material (grams)56,00046,000
Each unit of finished goods requires 2 grams of raw material. The company plans to sell 610,000 units during the year.
How much of the raw material should the company purchase during the year?
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