Garcia Corporation's April sales forecast projects that 6,300
units will sell at a price of $10.80 per unit. The desired ending
inventory is 10% higher than the beginning inventory, which was
1,300 units. Budgeted purchases of units in April would be:
6,300 units.
7,600 units.
6,430 units.
7,730 units.
Answer =
Budgeted Purchases = Sales + Desired Ending Inventory - Opening Inventory = 6300 + 1300*(1+.10) - 1300 = 6430 Units
Option C (6430 units) is the correct answer.
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Garcia Corporation's April sales forecast projects that 6,300 units will sell at a price of $10.80...
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Sales Forecast & Product Budget table numbers
(units)
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may: Budget (1,100 units) & Sales (900 units)
june: Budget (1075) & Sales (1025 units)
july : budget (1125 units) & sales (875 units)
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