Craners 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, 20×2, through June 30, 20×3.
July 1, 20×2 |
30, 20×3 |
|
Raw material (note) June 30, |
40,000 |
10,000 |
Work in process |
8,000 |
8,000 |
Finished goods |
30,000 |
5,000 |
(note) Three units of raw material are needed to produce each unit of finished product.
If 450,000 finished units were to be manufactured during the 20×2-20×3 fiscal year by Craners Company, the units of raw material needed to be purchased would be