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

Respuesta :

tanseershar

Answer:

Budgeted purchases of A 20,400  

Explanation:                                                    

                                                   A                              B

Sales                                 20,000                           22,000

Closing Inventory                                                      3,000

2000*1.2                             2,400

Less: Opening Inventory  (2,000)                           (2,500)

Purchases                          20,400                         22,500

Formula for this is

Purchases + opening stocks=Sales + closing stocks

Purchases= Sales+ closing stocks-opening stocks

                                                                                               

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