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
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