Stockport Manufacturing is preparing its purchases budget for the 2nd quarter of the year. The following information is given in units.
Beginning inventory = 350
Ending inventory = 425
Sales forecast for second quarter = 950
How many units should be purchased in the second quarter?

Question

Quizplus · Accepted Answer

To calculate the units to be purchased, we need to first calculate the total units needed:
Total units needed = Sales forecast + Ending inventory - Beginning inventory
Total units needed = 950 + 425 - 350 = 1025
Therefore, Choice C (1025 units) is the correct answer.

Stockport Manufacturing Is Preparing Its Purchases Budget for the 2nd