Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Each unit of finished goods requires 2 grams of raw material. The company plans to sell 560,000 units during the year.How much of the raw material should the company purchase during the year?

A) 1,231,000 grams
B) 1,210,000 grams
C) 1,261,000 grams
D) 1,220,000 grams

First, we need to calculate the amount of raw material needed to produce the planned units of finished goods:

560,000 units x 2 grams per unit = 1,120,000 grams

Next, we need to add the planned ending inventory of raw materials (120,000 grams) and subtract the planned beginning inventory of raw materials (30,000 grams):

1,120,000 grams + 120,000 grams - 30,000 grams = 1,210,000 grams

Therefore, the company should purchase 1,210,000 grams of raw material during the year. The correct answer is B.