Infinity Inc. has provided the following projected sales units for the next quarter: Projected Sales Units First month Second month Third month Projected sales units 20,000 25,000 30,000 Desired ending inventory is determined to be 12% of the next month’s projected sales. The expected purchase cost per unit is $30. Compute the budgeted purchase costs for the Second month of the quarter. Group of answer choices $768,000 $948,000 $858,000 $750,000
Infinity Inc. has provided the following projected sales units for the next quarter: Projected Sales Units First month Second month Third month Projected sales units 20,000 25,000 30,000 Desired ending inventory is determined to be 12% of the next month’s projected sales. The expected purchase cost per unit is $30. Compute the budgeted purchase costs for the Second month of the quarter. Group of answer choices $768,000 $948,000 $858,000 $750,000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 2BE: Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1...
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Question
Infinity Inc. has provided the following projected sales units for the next quarter:
Projected Sales Units| First month | Second month | Third month | |
|---|---|---|---|
| Projected sales units | 20,000 | 25,000 | 30,000 |
Desired ending inventory is determined to be 12% of the next month’s projected sales. The expected purchase cost per unit is $30. Compute the budgeted purchase costs for the Second month of the quarter.
Group of answer choices
$768,000
$948,000
$858,000
$750,000
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