Ask Experts Questions for FREE Help !
Ask
    juaco_aaron's Avatar
    juaco_aaron Posts: 7, Reputation: 1
    New Member
    		  
    #1

    Dec 12, 2007, 10:47 AM
    Budgeted purchases
    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!
    mrsjstevens's Avatar
    mrsjstevens Posts: 22, Reputation: 4
    New Member
    		  
    #2

    Dec 12, 2007, 11:00 AM
    Quote 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!
    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
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Budgeted indirect ccost, actual indirect cost rate [ 2 Answers ]

I don't understand how to do this one, can someone help me? Job costing, normal and actual costing. Anderson Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support)....

Merchandise Purchases Budget! [ 1 Answers ]

I need to prepare a merchandise purchases budget (in units) for each of the months of March, April and May. The given data is the following: *UNITS INVENTORY FOR FEBRUARY 2008: Footwear: 20,000 Sports Equipment: 80,000 Apparel: 50,000 *DESIRED ENDING INVENTORY AS PERCENTAGE OF EXPECTED...

Purchases Journal [ 4 Answers ]

I just need to know if I did this correctly. The directions state that Middleton Co. uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursement journal, and a general journal. Here are the following transactions. 6-1 Purchased 8100 of mdse on credit from Vick, Inc....

Purchases from an estate [ 3 Answers ]

I am the administrator for my brother's estate. This will be an insolvent estate. He has a vehicle that ~$8500 is owed to the lender. I would like to purchase this vehicle for myself. How do I do this so that it will not become property of the estate when it is paid for? Thanks!

View more questions Search