C | ezto.mheducation.com/hm.tpx Sarter Corporation is in the process of preparin

Question

C | ezto.mheducation.com/hm.tpx 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) 28,000 58,000 78,000 48,000 Raw material (grams) Each unit of finished goods requires 3 grams of raw material. The company plans to sell 630,000 units during the year, how much of the raw material should the company purchase during the year? 0 2,088,000 grams O 2030,000 grams O 2058,000 gram O 2.040,000 grams

Explanation / Answer

Budgeted production during the year = 630000+78000-28000 = 680000 Raw material purchases = (680000*3)+48000-58000= 2030000 Option 2 is correct

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