Question

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.

Answer 1

Answer:

22500 units

Step-by-step explanation:

Ending inventory =. 3000

Beginning inventory = 2500

Good sold = 22000

Beginning inventory + budgeted purchases - goods sold = ending inventory

2500 + x - 22000 = 3000

2500 + x = 3000 + 22000

2500 + x = 25000

x =25000 - 2500

x = 22500 units

Budgeted purchases of product for the year.