Solution-What actions should modesto take based on the

What actions should modesto take based on the budget

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Reference no: EM133112936

Question - Modesto Company purchases Product Alpha from a supplier for resale. The company's controller has just completed the purchases budget for the first four months of next year as shown below.

	January	February	March	April
Budgeted unit sales	30,000	40,000	60,000	50,000
Desired Ending Inventory	8,000	12,000	10,000	4,000
Units Required	38,000	52,000	70,000	54,000
Beginning Inventory	6,000	8,000	12,000	10,000
Budgeted Purchases	32,000	44,000	58,000	44,000

The company's supplier can provide a maximum of 50,000 units per month. What actions, if any, should Modesto take based on the budget information presented?

Reference no: EM133112936

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What actions should modesto take based on the budget

Reference no: EM133112936

Reference no: EM133112936

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