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R Company, a retailer, has budgeted sales for the next year as follows: first quarter, 60,000 units; second quarter 80,000 units. The inventory in hand at the beginning of quarter is 15,000 units. The desired ending inventory for a quarter is 25% of the next quarters sales. Calculate the budgeted inventory purchases for the first quarter. a) 80,000 units b) 60,000 units c) 65,000 units d) 55,000 units

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Answer #1

Option C is the answer

Beginning Invertory - 15000 units Ending inventory -35% of next quarter sales 25% x 80000 units 20,000 units 60,000 15,000udgeted - 20,000 nven-toru4 Purchases Budgeted inventory purchases 65,000 units ? option

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