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Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and...

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Accounting

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 2 grams of raw material. The company plans to sell 220,000 units during the year.

How much of the raw material should the company purchase during the year?

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