Kenner's Ending Inventory Policy Is That SR200 Should Have 15

question 154

Multiple Choice

$\begin{array}{lrr}&\text { SR200 }&TX 500\\\text { May } & 8,000 & 20,000 \\\text { June } & 13,000 & 32,000 \\\text { July } & 11,000 & 39,000 \\\text { August } & 18,000 & 46,000\end{array}$ Kenner's ending inventory policy is that SR200 should have 15% of next month's sales in ending inventory and TX500 should have 40% of next month's sales in ending inventory. On May 1, there were 1,200 units of SR200 and 9,000 units of TX500.TX500 requires 6 units of component A. (SR200 does not use component A.) There were 30,000 units of component A in inventory on May 1. Kenner wants to have 20% of the following month's production needs in inventory for Component A.
-Refer to Figure 9-2. What is the budgeted amount of component A to be purchased in May?

• A) 41,760
• B) 142,800
• C) 154,560
• D) 164,600
• E) 66,600

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