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Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are planned for the year 20x1. Two units of

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

January 1 December 31
Raw material 42,000 47,000
Work in process 16,000 16,000
Finished goods 95,000 54,000

Required: 1. If Bodin Company plans to sell 466,000 units during the year, compute the number of units the firm would have to manufacture during the year. 2. If 510,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased.

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