Question

please provide the answer with explanation

The sales budget for Modesto Corp. shows that 21,600 units of Product A and 23,600 units of Product 3 are going to be sold for prices of $1160 and $13.60, respectively. The desired ending inventory of Product Ais 20% higher than its beginning inventory of 3.600 units. The beginning inventory of Product Bis 4300 units. The desired ending inventory of Bis 4.600 units. Budgeted purchases of Product B for the year would be Multiple Choice 27700 units 31,300 units 22.100 units 14.900 units 2100 units 24.100 units.

Answer 1

Answer : Option E, 24,100 units

Explanation :

As we know that ,

Opening inventory + purchase - Sales = closing inventory

By using about approach let us find budgeted purchases of product B for the year

Therefore substitute the values,

4,100 units + budgeted purchases of product B - 23,600 units = 4,600 units

Budgeted purchases of product B = 4,600 + 23,600 - 4,100

= 24,100 units.