Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Two units of raw material are required to produce each unit of finished product.

Required:
1. If Bod in Company plans to sell 480,000 units during the year, compute the number of units the firm would have to manufacture during the year.
2. If 500,000 finished units were to be manufactured by Bod in Company during the year, determine the amount of raw material to be purchased.

Transcribed Image Text:

Raw material Work in process Finished goods January 1 35,000 12,000 80,000 December 31 45,000 12,000 50,000