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River City Promotions sells custom crested jackets, which it purchases from its suppliers for $20...

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Accounting

River City Promotions sells custom crested jackets, which it purchases from its suppliers for $20 per unit. To ensure it always has enough stock on hand to meet upcoming needs, it requires an ending inventory for any period to be equal to 30% of the next periods demand.
Budgeted sales (in units) for the year ended December 31,20X1 are as follows:
Q113,900
Q28,000
Q314,900
Q4-15,300
Assuming that inventory on hand at the beginning of each period matches that planned for in the policy above, what would be the cost of purchases for Q2?
a.
$201,400
b.
$332,800
c.
$249,400
d.
$172,800

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