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Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning Inventory
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.
Beginning Inventory | Ending Inventory | |
---|---|---|
Finished goods (units) | 22,000 | 72,000 |
Raw material (grams) | 52,000 | 42,000 |
Each unit of finished goods requires 2 grams of raw material. The company plans to sell 690,000 units during the year.
The number of units the company would have to manufacture during the year would be:
Multiple Choice
690,000 units
762,000 units
638,000 units
740,000 units
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