Answer the Following Questions Using the Information Below:
Wallace Company

question 110

Multiple Choice

Answer the following questions using the information below:
Wallace Company provides the following data for next year:
$$\begin{array} { l c } \text { Month } & \text { Budgeted Sales } \\\text { January } & \$ 120,000 \\\text { February } & 108,000 \\\text { March } & 132,000 \\\text { April } & 144,000\end{array}$$ The gross profit rate is 35% of sales. Inventory at the end of December is $21,600 and target ending inventory levels are 20% of next month's sales, stated at cost.
-What is the amount of purchases budgeted for January?

• A) $63,960
• B) $70,440
• C) $78,000
• D) $92,040

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Definitions:

Fetal Alcohol Syndrome

A condition in unborn children resulting from alcohol exposure during the mother's pregnancy, causing brain damage and growth problems.

Pregnant Rats

Used in research contexts to study developmental processes, drug effects, or disease models due to their relevance to human physiology.

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The progeny or descendants of a person, animal, or plant.

Motor Skills

The abilities required to perform movements and tasks, involving the coordination between muscles and the nervous system, categorized into fine (small movements) and gross (large movements) motor skills.