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tamaranim1 [39]
3 years ago
14

Garfield Corp. expects to sell 1,300 units of its pet beds in March and 900 units in April. Each unit sells for $110. Garfield’s

ending inventory policy is 30 percent of the following month’s sales. Garfield pays its supplier $40 per unit. Compute Garfield's budgeted purchases for March.
Business
1 answer:
Svetach [21]3 years ago
4 0

Answer:

$47,200

Explanation:

For computing the budgeted purchase, first we have to determine the purchase unit which is shown below:

= Sale units + ending inventory units - beginning inventory units

where,

Sale units are 1,300 units

Ending inventory units = 900 units × 30% = 270 units

Beginning inventory units = 1,300 × 30% = 390 units

Now put these units to the above formula  

So, the units would equal to

= 1,300 units + 270 units - 390 units

= 1,180 units

Now the budgeted purchase would be

= 1,180 units × $40

= $47,200

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