Answer:
------- JULY AUGUST. SEPTEMBER
Sales 210,000. 300,000 270,000
Ending. 45,000. 40,500. 27,000
total
required. 255,000. 340,500. 297,000
Beginning (31,500) (45,000) (40,500)
purchase 223,500. 295,500. 256,500
Explanation:
the ending would be next month sales times 15%
July ending
August sales x 15%
300,000 x 15% = 45,000
August Ending
September sales x 15%
270,000 x 15% = 40,500
September Ending
October sales x 15%
180,000 x 15% = 27,000
we will add the sales and the desired ending to get the total required for each month
last step we subtract the beginning inventory for each month, as those units are already there and don't need to purchased.
the ending of one month will be the beginning of the next month.
July ending is August beginning
August ending is September beginning
