Blanchard Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 2009, through June 30, 2010:

Required
If Blanchard Company were to manufacture 500,000 finished units during the 2009€“2010 fiscal years how many units of raw material would it need topurchase?

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Raw materials Work in process Finished goods Two units of raw material are needed to produce each unit July 1, 2009 40,000 10,000 80,000 June 30, 2010 50,000 10,000 50,000 of finished product.