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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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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.

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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 ...

Purchase this Solution


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