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    Material to be Purchased

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    Sally Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

    Finished goods - 20,000 units at the beginning of the period and 70,000 units at the end.

    Raw Materials - 50,000 grams at the beginning of the period and 40,000 grams at the end.

    Each unit of finished goods requires 2 grams of raw material.

    If the company plans to sell 670,000 units during the year, how many grams of raw material should be purchased?

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    https://brainmass.com/business/accounting/determining-amount-material-needed-455186

    Solution Preview

    Sally Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

    Finished goods - 20,000 units at the beginning of the period and 70,000 units at the end.

    Raw ...

    Solution Summary

    This solution shows how to calculate the amount of raw material that Sally Corporation must purchase if they wish to sell 670,000 units during the year.

    $2.19

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