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 B for the year would be:

A) 26,500 units.
B) 20,500 units.
C) 16,500 units.
D) 22,500 units.
E) 24,500 units.

Correct Answer:

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