Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Five units of raw material are required to produce each unit of finished product.

January 1 December 31

Raw material 35,000 48,000

Work in process 19,000 19,000

Finished goods 86,000 60,000

Required:

1. If Bodin Company plans to sell 468,000 units during the year, compute the number of units the firm would have to manufacture during the year.

2. If 502,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased.