Question

MC Qu. 98 Garcia Corporation's April sales forecast... Garcia Corporation's April sales forecast projects that 6,100 units will sell at a price of $10.60 per unit. The desired ending inventory is 10% higher than the beginning inventory, which was 1,100 units. Budgeted purchases of units in April would be:

Answer 1

Total budgeted purchases = $65,826

Step-by-step explanation:

Budgeted purchases

Sales forecast = 6,100 units

Ending inventory 1,100 * 110% = 1,210 units

Required units = 7,310

- Beginning inventory = 1,100 units

Units to be purchased = 6,210

Cost per unit = $10.60

Total budgeted purchases = $65,826