Question

Maki plans to sell 10,000 units of a particular product during July, and expects sales to increase at the rate of 10% per month during the remainder of the year. The June 30 and September 30 ending inventories are anticipated to be 1,100 units and 950 units, respectively. On the basis of this information, how many units should Maki purchase for the quarter ended September 30?

Answer 1

Answer:

32,950 units

Explanation:

The computation of the number of units purchased is shown below:

Purchase units =  Total Sale units + ending inventory units - beginning inventory units

where,

Sale units = July sales units + August sales units + September sales units

The July sales units = 10,000 units

August sales units = 10,000 units + 10,000 units × 10%

                               = 10,000 units + 1,000 units

                                = 11,000 units

September sales units = 11,000 units + 11,000 units × 10%

                                      = 11,000 units + 1,100 units

                                      = 12,100 units

So, the total sales units are

= 10,000 units + 11,000 units + 12,100 units

= 33,100 units

So, the purchase units is

= 33,100 units + 950 units - 1,100 units

= 32,950 units