Question

A June sales forecast projects that 5,000 units are going to be sold at a price of $11.00 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 600 units. Merchandise purchases for June are projected to include how many units

Answer 1

Purchases= 5,090 units

Step-by-step explanation:

Giving the following information:

A June sales forecast projects that 5,000 units are going to be sold.

The desired ending inventory of units is 15% higher than the beginning inventory of 600 units.

To calculate the merchandise purchase, we need to use the following formula:

Purchases= sales + desired ending inventory - beginning inventory

Purchases= 5,000 + 600*1.15 - 600

Purchases= 5,090 units