MC Qu100 The sales budget for Modesto The sales budget for Modesto Corp. shows t

Question

MC Qu100 The sales budget for Modesto The sales budget for Modesto Corp. shows that 20,900 units of Product A and 22,900 units of Product 8 are going to be sold for prices of $10 90 and $1290, respectively The desied ening inventory of Product A is 10% righer than its begning inventory of 2900unts The beginig inventory of Product B is 3400 units. The desired ending inventory of B is 3,900 units, Budgeted purchases of Product 8 for the year would be: Mutiple Choice 23,400 units 26,300 uns 28200 MacBook Air command option

Explanation / Answer

The figures are not properly visible. I am trying to provide the answer as per figures visible. Please make corrections if required due to error as the image is not properly visible

Sales of product B = 22,900 units

Opening Inventory of product B = 3,400 units

Closing Inventory of product B = 3,900 units

So, Purchases required for product B

= Sales + Closing Inventory – Opening Inventory

= 22,900 + 3,900 – 3,400

= 23,400 units

So, option A is the correct option

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