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

question 34

Multiple Choice

O'Hare Company is in the process of preparing a purchases budget for the first quarter of 2014. The company has budgeted sales as follows: $$\begin{array} { | l | l l | } \hline \text { December, 2013 } & \$ & 44,000 \\\hline \text { January, 2014 } & \$ & 46,500 \\\hline \text { February, 2014 } & \$ & 51,000 \\\hline \text { March, 2014 } & \$ & 61,500 \\\hline\end{array}$$ 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 is:

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

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Definitions:

Erikson's Theory

A psychosocial development theory outlining eight stages from infancy to adulthood, each characterized by a psychological crisis.

Feelings of Inferiority

Emotions stemming from a belief that one is less worthy or less capable than others, often influencing one's self-esteem.

Sense of Industry

A stage in Erik Erikson's theory of psychosocial development where children gain confidence through achieving tasks and competencies.

Mental Structures

Refer to the complex, underlying frameworks that organize and interpret information in the mind, influencing how we perceive, think, and remember.