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)
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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