Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

  

	Beginning Inventory	Ending Inventory
Finished goods (units)	26,000	76,000
Raw material (grams)	56,000	46,000

  

Each unit of finished goods requires 2 grams of raw material.

  

If the company plans to sell 730,000 units during the year, the number of units it would have to manufacture during the year would be:

→	780,000 units
	806,000 units
	730,000 units
	674,000 units

Production Budget

Budgeted unit sales	730,000
Add desired ending finished goods inventory	76,000
Total needs	806,000
Less beginning finished goods inventory	26,000
Required production in units	780,000