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Clare purchases a single product for $23 and sells it for $30. Forecasted sales for the next three months are July 4,800 units, August 6,200 units, September 7,700 units. Clare's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,920 units. What are budgeted purchases in units for August? a. 6,800 units b. 5,600 units c. 600 units d. 10,760 units

Clare purchases a single product for $23 and sells it for $30. Forecasted sales for the next three months are July 4,800 units, August 6,200 units, September 7,700 units. Clare's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,920 units. What are budgeted purchases in units for August? a. 6,800 units b. 5,600 units c. 600 units d. 10,760 units

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Clare purchases a single product for $23 and sells it for $30. Forecasted sales for the next three months are July 4,800 units, August 6,200 units, September 7,700 units. Clare's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,920 units. What are budgeted purchases in units for August? a. 6,800 units b. 5,600 units c. 600 units d. 10,760 units
Transcribed Image Text:Clare purchases a single product for $23 and sells it for $30. Forecasted sales for the next three months are July 4,800 units, August 6,200 units, September 7,700 units. Clare's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,920 units. What are budgeted purchases in units for August? a. 6,800 units b. 5,600 units c. 600 units d. 10,760 units
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