Chu Company Provided the Following Information Related to Its Inventory

question 55

Multiple Choice

Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: $\begin{array}{|l|l|r|r|r|}\hline& \text { Dec. Year } 1 &\text { Jan. Year } 2 &\text { Feb. Year } 2 & \text { Mar. Year } 2 \\\hline & \text { (Actual) } & \text { (Budgeted) }& \text { (Budgeted) }& \text { (Budgeted) } \\\hline \text {Cost of goods sold } &\$ 80,000 & \$ 140,000 & \$ 180,000 & \$ 120,000 \\\hline\end{array}$ Desired ending inventory levels are 25% of the following month's projected cost of goods sold.Budgeted purchases of inventory in February Year 2 would be:

• A) $135,000.
• B) $165,000.
• C) $180,000.
• D) $225,000.

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Definitions:

Perceived Opportunities

Opportunities that individuals or organizations believe exist and can be capitalized on, even if they have not been quantitatively proven.

Perseverance

The continued effort to do or achieve something despite difficulties, failures, or opposition.

Long-term Goals

Objectives set with an extended timeframe in mind, usually exceeding one year, to achieve significant accomplishments.

Deliberate Practice

Carrying out carefully focused efforts to improve current performance.