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The sales budget for Modesto Corp. shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units. Budgeted purchases of Product B for the year would be:
Multiple Choice
24,500 units.
22,500 units.
16,500 units.
26,500 units.
20,500 units.
Answers: 2
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The sales budget for Modesto Corp. shows that 20,000 units of Product A and 22,000 units of Product...
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