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Question

The sales budget for Modesto Corp. shows that 22,000 units of Product A and 24,000 units of Product B are going to be sold for prices of $12.00 and $14.00, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 4,000 units. The beginning inventory of Product B is 4,500 units. The desired ending inventory of B is 5,000 units. Budgeted purchases of Product A for the year would be:

  • 14,600 units.
  • 26,800 units.
  • 21,500 units.
  • 22,000 units.
  • 22,800 units

 

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