River City Promotions sells custom crested jackets, which it purchases from its suppliers for $20...

80.2K

Verified Solution

Question

Accounting

River City Promotions sells custom crested jackets, which it purchases from its suppliers for $20 per unit. To ensure it always has enough stock on hand to meet upcoming needs, it requires an ending inventory for any period to be equal to 30% of the next periods demand.
Budgeted sales (in units) for the year ended December 31,20X1 are as follows:
Q113,900
Q28,000
Q314,900
Q4-15,300
Assuming that inventory on hand at the beginning of each period matches that planned for in the policy above, what would be the cost of purchases for Q2?
a.
$201,400
b.
$332,800
c.
$249,400
d.
$172,800

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students