The Sales Budget for Modesto Corp

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 B is 3,000 units.Budgeted purchases of Product A for the year would be:

A) 22,400 units.
B) 20,400 units.
C) 20,000 units.
D) 19,500 units.
E) 12,200 units.

Correct Answer:

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