Alpha Beta Company Has a Sales Budget for Next Month

Multiple Choice

Alpha Beta Company has a sales budget for next month of $50,000. Cost of goods sold is expected to be 60 percent of sales. All goods are purchased in the month used and paid for in the month following their purchase. The beginning inventory of merchandise is $1,500 and an ending inventory of $2,000 is desired. Beginning accounts payable is $13,000.
How much merchandise inventory will Alpha Beta Company need to purchase next month?

A) $29,000
B) $29,500
C) $30,000
D) $30,500