B. This is the number of units of raw materials needed for production. However, it does not take the materials inventory level increase into consideration. See the correct answer for a complete explanation.

C. We know that two units of material are needed to produce each unit of finished good. Since 500,000 finished units are to be manufactured, the number of units of raw materials needed for production is 1,000,000. The inventory level of raw materials also is to increase during the year by 10,000, so 1,010,000 units of raw materials will need to be purchased during the year.

D. This answer incorporates a decrease in the raw materials inventory during the year instead of an increase. See the correct answer for a complete explanation.