Problem
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) 23,000 73,000
Raw material (grams) 53,000 43,000
Each unit of finished goods requires 2 grams of raw material.
The company plans to sell 580,000 units during the year, how much of the raw material should the company purchase during the year?