We know that 6,000 units will be sold at 10.50 each. The desired ending inventory is 30% higher than the beginning inventory which was 1,000 units. What would be the budgeted purchases?

6000?
7000?
6300?
7300?
Or other amount?

Please I need an answer for this... help!

Quote:

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Originally Posted by juaco_aaron

we know that 6,000 units will be sold at 10.50 each. The desired ending inventory is 30% higher than the beginning inventory which was 1,000 units. What would be the budgeted purchases?

6000?
7000?
6300?
7300?
or other amount?

please i need an answer for this... help!

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6300. If you plan on selling 6000 and you need 30% more than 1000 (300) after you sell those six thousand, you need 7300. However you already have a thousand. 7300-1000=6300