Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory
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Question:
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.
| Initial inventory | running out of inventory | |
| Finished products (units) | 31,000 | 81,000 |
| Raw material (grams) | 61,000 | 51,000 |
Each unit of finished product requires 3 grams of raw material. The company expects to sell 660,000 units during the year
How much raw material must the company buy during the year?
Expert Answer:
Lets first calculate the total raw material required for producing the expected number of finished p... View the full answer
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