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.

RawmaterialWorkinprocessFinishedgoodsJanuary171,00012,50071,000December3191,50012,50040,500 A. Production units B. Purchases of raw material units