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Question - Company A anticipates the following beginning and ending inventory levels for the first quarter of 2011:
January 1
March 31
Raw materials inventory
20,000 pounds
25,000 pounds
Finished goods inventory
5,000 units
7,000 units
Each unit requires five pounds of raw material. If each pound of raw material costs $2.00 from the supplier and the budgeted dollar amount of raw material purchases for the first quarter is $230,000, how many units are budgeted to be sold during the first quarter of 2011?
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