Betsy Manufacturing is preparing its purchases budget for the 2nd quarter of the year.The following information is given in units: $$\begin{array} { l c c }
& \text { Beginning } & \text { Ending } \
& \text { Inventory } & \text { Inventory } \
\text { Balance 2nd quarter } & 100 & 250
\end{array}$$ Sales forecast for 2nd quarter = 1000
How many units should be purchased in the 2nd quarter?

Question

Betsy Manufacturing is preparing its purchases budget for the 2nd quarter of the year.The following information is given in units: $$\begin{array} { l c c } 
& \text { Beginning } & \text { Ending } \
& \text { Inventory } & \text { Inventory } \
\text { Balance 2nd quarter } & 100 & 250
\end{array}$$ Sales forecast for 2nd quarter = 1000
How many units should be purchased in the 2nd quarter?

Quizplus · Accepted Answer

To calculate the units to be purchased, use the formula: Purchases = Sales forecast + Ending inventory - Beginning inventory. Thus, Purchases = 1000 + 250 - 100 = 1150 units.

Betsy Manufacturing Is Preparing Its Purchases Budget for the 2nd