Southside Manufacturing is preparing its purchases budget for the 3rd quarter of the year. The following information is given in units.
$$\begin{array} { l r }
\text { Beginning inventory } & 550 \
\text { Ending inventory } & 780 \
\text { Sales forecast for second quarter } & 1390
\end{array}$$
How many units should be purchased in the second quarter?

Question

Southside Manufacturing is preparing its purchases budget for the 3rd quarter of the year. The following information is given in units.
$$\begin{array} { l r } 
\text { Beginning inventory } & 550 \
\text { Ending inventory } & 780 \
\text { Sales forecast for second quarter } & 1390
\end{array}$$
How many units should be purchased in the second quarter?

Quizplus · Accepted Answer

To calculate the units to be purchased, we use the formula: Units to be Purchased = Sales Forecast + Desired Ending Inventory - Beginning Inventory. Plugging in the numbers: 1390 (Sales Forecast for 2nd quarter) + 780 (Ending Inventory) - 550 (Beginning Inventory) = 1620 units.

Southside Manufacturing Is Preparing Its Purchases Budget for the 3rd