Budgeted purchase?

S & S Corporation desires a December 31 ending
inventory of 1,420 unit. Budgeted sale for
December are 2,000 unit. The November 30
inventory be 900 unit. Budgeted purchases are:
A.2,520 unit.
B.1,620 unit.
C.3,420 unit.
D.2,000 unit.
E.2,900 unit.

Answers:
Beginning inventory is 900 and climax inventory is 1420 requiring a purchase of 520 unit to increase inventory. In auxiliary 2000 unit involve to be purchased to meeting the budgeted sale so the answer is A - 2520 unit.


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