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Raider-X Company forecasts sales of 17,000 units for April
Raider-X Company forecasts sales of 17,000 units for April. Beginning inventory is 3,800 units. The desired ending inventory is 30% higher than the beginning inventory. How many units should Raider-X purchase in April? RAIDER-X COMPANY Purchases Budget (in units) For Month Ended April 30 Budgeted ending inventory (units) Required units of available inventory Units to be purchased
Expert Solution
Based on the information available in the question, we can answer as follows:-
The Units to be purchased is calculated as follows:-
| Particulars | Units |
| Budgeted Ending Inventory (3,800 units * 1.30) | 4,940 |
| Add:- Forecasted sales | 17,000 |
| Less:- Opening Ending wheel inventory | (3,800) |
| Units to be purchased | 18,140 units |
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