Tsao 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. Required: A. If Tsao Company plans to sell 385,000 units during the year, compute the number of units the firm would have to manufacture during the year. B. If 410,000 finished units were to be manufactured by Tsao Company during the year, determine the amount of raw material to be purchased.

	January 1				December 31
Raw material		71,000				91,500
Work in process		12,500				12,500
Finished goods		71,000				40,500