Crosser Company budgets on a quarterly basis. The following beginning and ending inventory levels (in units) are planned for the first and second quarters of 2009.

Required
If Crosser Company were to manufacture 400,000 finished units (in total) during the first two quarters of 2009, how many units of raw material would it need to purchase? Prepare the purchases budget for the first six months of2009.

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Raw materials Work in process Finished goods Two units of raw material are needed to produce each unit of finished product. Jan-March, 2009 40,000 12,000 80,000 April-June, 2009 50,000 5,000 45,000