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

Required:
1. If Alder Company plans to sell 3,360,000 units during the year, compute the number of units the firm would have to manufacture during the year.
2. If 3,500,000 finished units were to be manufactured by Adler Company during the year, determine the amount of raw material to be purchased.
(CMA,adapted)

Transcribed Image Text:

December 31 315,000 84,000 January 1 Raw material Work in process Finished goods ..245,000u 84,000 560,000