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Modesto Company purchases Product Alpha from a supplier for resale. The company's controller has just completed the purchases budget for the first four months of

Modesto Company purchases Product Alpha from a supplier for resale. The company's controller has just completed the purchases budget for the first four months of next year as shown below.

January February March April
Budgeted unit sales 30,000 40,000 60,000 50,000
Desired Ending Inventory 8,000 12,000 10,000 4,000
Units Required 38,000 52,000 70,000 54,000
Beginning Inventory 6,000 8,000 12,000 10,000
Budgeted Purchases 32,000 44,000 58,000 44,000

The company's supplier can provide a maximum of 50,000 units per month. What actions, if any, should Modesto take based on the budget information presented?

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