Shortie Company produces two products: X Brand and Y Brand. Budgeted sales for four months are as follows:
Shortie's ending inventory policy is that X Brand should have 10% of its next month's sales in ending inventory and Y Brand should have 20% of next month's sales in its ending inventory. On May 1, Shortie's inventory had 1,000 units of X Brand and 9,000 units of Y Brand.Y Brand requires four units of component A. (X Brand does not use component A.) On May 1, 2,100 units of component A were in inventory. Shortie wants to have 30% of the following month's production needs in inventory for component a.
-Refer to the Figure.How many units of component A are budgeted to be purchased in May?
A) 64,500
B) 66,600
C) 180,000
D) 264,300
Correct Answer:
Verified
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