Chu Company Provided the Following Information Related to Its Inventory

question 135

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: 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: $$\begin{array} { | l | c | c | c | c | } \hline & \text { Dec. Year 1 } & \text { Jan. Year 2 } & \text { Feb. Year 2 } & \text { Mar. Year 2 } \\\hline & \text { (Actual) } & \text { (Budgeted) } & \text { (Budgeted) } & \text { (Budgeted) } \\\hline \text { Cost of goods sold } & \$ 80,000 & \$ 140,000 & \$ 180,000 & \$ 120,000 \\\hline\end{array}$$

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

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Definitions:

Aerobic Cellular Respiration

Aerobic cellular respiration is a metabolic process where cells convert biochemical energy from nutrients into adenosine triphosphate (ATP), using oxygen as the electron acceptor.

Catabolism

The aspect of metabolism in which complex substances are broken down to form simpler substances; catabolic reactions are particularly important in releasing chemical energy stored by the cell. Compare with anabolism.

Anabolism

The aspect of metabolism in which simpler substances are combined to form more complex substances, resulting in the storage of energy, the production of new cell materials, and growth. Compare with catabolism.

Parabronchi

The small, air-filled tubes in the lungs of birds through which air flows for highly efficient gas exchange.