How much of the raw material should the company purchase

Reference no: EM131974147

Problem

Sarter 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)         23,000                    73,000
Raw material (grams)           53,000                    43,000

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

The company plans to sell 580,000 units during the year, how much of the raw material should the company purchase during the year?

Reference no: EM131974147

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