Use the Information Below to Answer the Following Questions

Multiple Choice

Use the information below to answer the following questions.
Gillies Company budgets on an annual basis. The following beginning and ending inventory levels are planned for the coming year, 2015. There are two units of material per unit of output.
-Refer to the table above. If 500,000 finished units were to be sold by Gillies Company during the year, what is the amount of direct material that needs to be purchased?

A) 940,000 kgs
B) 970,000 kgs
C) 1,000,000 kgs
D) 1,010,000 kgs