Question

The beginning inventory is expected to be 2,000 cases. Expected sales are 10,000 cases, and the company wishes to begin the next period with an inventory of 1,000 cases. The number of cases the company must purchase during the month is ____________

A. 9,000 cases.
B. 10,000 cases.
C. 11,000 cases.
D. 13,000 cases.

Answer 1

Answer: A. 9,000 cases

Step-by-step explanation:

Given;

The beginning inventory BI = 2,000 cases

Expected sales ES = 10,000 cases

The expected beginning inventory for the next period EBI = 1,000 cases

The number of cases to be purchased PC.

PC = ES + EBI - BI = 10,000 + 1,000 - 2,000

PC = 9,000 cases

The number of cases the company must purchase during the month is 9,000 cases

Answer 2

The number of cases the company must purchase during the month is A. 9,000 cases.

Step-by-step explanation:

The beginning inventory next period = The ending inventory in the period = The beginning inventory in the period + Inventory purchased in the period - Inventory sold in the period = 1,000 cases

Therefore,

Inventory purchased in the period = The ending inventory in the period + Inventory sold in the period - The beginning inventory in the period = 1,000 + 10,000 - 2,000 = 9,000 cases.