EX $9-23($Algo$)$ Budgeting Production and Direct$-$Material Purchases $($LO $9-3,9-6)$

Bodin Company budgets on an annual basis. The following beginning and ending inventory levels $($in units$)$ are plannned for the year

$20$x$1.$ Four units of raw material are required to produce each unit of finished product.

Required:

If Bodin Company plans to sell $474,000$ units during the year, compute the number of units the firm would have to manufacture

during the year.

If $503,000$ finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be

purchased.

Required production in units

Raw material purchases in units