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What budgeted purchases of product a for the year would be

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Question 1: The sales budget for Modesto Corp. shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10.00 and $12.00, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of B is 3,000 units. Budgeted purchases of Product A for the year would be:

Option 1: 20,400 units.

Option 2: 19,500 units.

Option 3: 22,400 units.

Option 4: 20,000 units.

Option 5: 12,200 units.

Reference no: EM132521935

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