Garfield Corp. expects to sell 1,400 units of its pet beds in March and 900 units...

Garfield Corp. expects to sell 1,400 units of its pet beds in March and 900 units in April. Each unit sells for $150. Garfield’s ending inventory policy is 20 percent of the following month’s sales. Garfield pays its supplier $40 per unit.

Compute Garfield's budgeted purchases for March.

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Expert Solution

Expected sales for March	1400
Add: Desired ending inventory	180	=900*20%
Less: Beginning inventory	-280	=1400*20%
Required purchases	1300
X Cost per unit	40
Budgeted purchases for March	52000

ekkarill92 answered 1 year ago

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