Garcia Corporation's April sales forecast projects that 7,100 units will sell at a price of $11

Accounting Aug 19, 2020

Garcia Corporation's April sales forecast projects that 7,100 units will sell at a price of $11.60 per unit. The desired ending inventory is 10% higher than the beginning inventory of 2,100 units. Budgeted purchases in April would be

Expert Solution

Computation of Budgeted purchases in April:

Budgeted Purchases = Sales + Desired Ending Inventory - Opening Inventory

= 7,100 + 2,100*(1+.10) - 2,100

=7,100 + 2,310 - 2,100

Budgeted Purchases = 7,310 units

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