O'Hare Company Is in the Process of Preparing a Purchases

question 138

Multiple Choice

O'Hare Company is in the process of preparing a purchases budget for the first quarter of Year 2. The company has budgeted sales as follows: $\begin{array}{lc}\text { Dec. Year 1 } & \$ 44,000 \\\text { Jan. Year 2 } & \$ 46,500 \\\text { Feb. Year 2 } & \$ 51,000 \\\text { Mar. Year 2 } & \$ 61,500\end{array}$ Cost of goods sold is expected to be 75% of sales. The company would like to have ending inventory each month equal to 25% of the following month's predicted cost of sales. The total cost of purchases in January Year 2 is:

• A) $35,719.
• B) $46,500.
• C) $44,438.
• D) $59,250.

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Definitions:

Dreams

Sequences of thoughts, images, and sensations occurring in a person's mind during sleep.

Denial

A psychological defense mechanism where an individual refuses to accept the reality of facts or feelings, to avoid dealing with uncomfortable emotions.

Projection

The psychological process of attributing one's own thoughts, feelings, or motives to another person or object.

Suppression

A form of emotion regulation that involves inhibiting emotion-expressive behavior.