Question

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) 27,000 37,000 Raw material (grams) 57,000 47,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 340,000 units during the year. How much of the raw material should the company purchase during the year?

Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year Ending Beginning Inventory 27,000 57,000 Inventory Finished goods (units) Raw material (grams) 37,000 47,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 340,000 units during the year How much of the raw materlal should the company purchase during the year? Multiple Cholce 1,097,000 grams 1,067,000 grams 1,040,000 grams 1,050,000 grams

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 3 The correct answer is 1040000 grams 5 Raw material Purchase = Ending inventory trequired for production - beginning inventory 6 = 47000+(37000+340000-27000)*3) - 57000 7 = 47000+ 1050000-57000 3 = 1040000 grams 10 Thus the correct answer is 104000 grams

The correct answer is 1040000 grams.