Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Finished goods (units) Beginning inventory 70,000 Ending inventory 20,000 60,000 Raw material (grams) 50,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 880,000 units during the year. How much of the raw material should the company purchase during the year? a. 2,550,000 grams b. 2,490,000 grams c. 2,480,000 grams d. 2,500,000 grams

Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Finished goods (units) Beginning inventory 70,000 Ending inventory 20,000 60,000 Raw material (grams) 50,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 880,000 units during the year. How much of the raw material should the company purchase during the year? a. 2,550,000 grams b. 2,490,000 grams c. 2,480,000 grams d. 2,500,000 grams

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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How much is the cost of goods sold for the year ?
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The number of units it would need to manufactured during May?