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) |
26,000 |
76,000 |
| Raw material (grams) |
56,000 |
46,000 |
Each unit of finished goods requires 2 grams of raw material.
If the company plans to sell 700,000 units during the year, how much of the raw material should the company purchase during the year?