Question

A june sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. the desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. total june sales are anticipated to be

Answer 1

Purchases = Sales units + Closing inventory - Beginning Inventory
                  = 6,000 + (1,000 * 115%) - 1,000
                  = 6,150 units