Kwanzan Industries expects to sell 450 units of Product A and 380 units of Product B each day at an ave $15 for Product A and $26 for Product B. The expected cost for Product A is 42% of its selling price and cost for Product B is 63% of its selling price. Kwanzan Industries has no beginning inventory, but it want four-day supply of ending inventory for each product. Compute the budgeted purchases for the next (s week. (Round the answer to the nearest dollar.) A. $66,520 OB. $99,653 OC. $63,416 OD. $116,410

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...
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Kwanzan Industries expects to sell 450 units of Product A and 380 units of Product B each day at an average price of
$15 for Product A and $26 for Product B. The expected cost for Product A is 42% of its selling price and the expected
cost for Product B is 63% of its selling price. Kwanzan Industries has no beginning inventory, but it wants to have a
four-day supply of ending inventory for each product. Compute the budgeted purchases for the next (seven-day)
week. (Round the answer to the nearest dollar.)
A. $66,520
OB. $99,653
OC. $63,416
OD. $116,410
Transcribed Image Text:Kwanzan Industries expects to sell 450 units of Product A and 380 units of Product B each day at an average price of $15 for Product A and $26 for Product B. The expected cost for Product A is 42% of its selling price and the expected cost for Product B is 63% of its selling price. Kwanzan Industries has no beginning inventory, but it wants to have a four-day supply of ending inventory for each product. Compute the budgeted purchases for the next (seven-day) week. (Round the answer to the nearest dollar.) A. $66,520 OB. $99,653 OC. $63,416 OD. $116,410
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ISBN:
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OpenStax College