The ABC Company is planning on producing 54000 units of a Widget. The widget uses 1.3 units of raw material. The ABC Company desires an ending inventory of 14500 units but currently has a beginning raw materials beginning inventory of 6700 units. If the raw materials cost $14.9 per unit, what is the total cost of the raw materials required for production? If the company is planning on selling 42000 units, what is the total cost of goods sold?
