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Pepe Corporation is in the process of preparing its annual budget. The company plans to sell 270,000 units during the year. Each unit of finished
Pepe Corporation is in the process of preparing its annual budget. The company plans to sell 270,000 units during the year. Each unit of finished goods requires 7 grams of raw material to manufacture it. The following beginning and ending inventory levels are planned for the year Beginning InventoryEnding Inventory Finished goods (units) Raw material (grams) 20,000 50,000 30,000 40,000 How much of the raw material should the company purchase during the year? 1,960,000 grams 1,950,000 grams 1,970,000 grams 2,000,000 grams
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