Question

MC Qu. 97 Bioclean Co. sells a biodegradable... Bioclean Co., a merchandiser, sells a biodegradable cleaning product and has predicted the following sales for the first four months of the current year: Jan. Feb. March April Sales in Units1,800 2,000 2,200 1,700 Ending inventory for each month should be 30% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February

Answer 1

Answer: 2,060 units

Explanation:

The Beginning inventory of February is 30% of the sales in February.

The ending inventory in February is 30% of March sales.

February beginning inventory = 30% * 2,000 = 600 units

Ending inventory = 30% * 2,200 = 660 units

Units to be purchased in February = Sales for February + Ending inventory - Beginning units

= 2,000 + 660 - 600

= 2,060 units