Respuesta :
Answer:
18,750 units
Explanation:
A firm has the following forecast information for sales of Product X:
April 15,000 units
May 17,000 units
June 19,000 units
July 18,000 units Product X sells for $3 per unit.
Half of the firm's sales are for cash and the other half is on account.
Credit sales are collected in the following pattern: 60% in the month of sale, 30% in the month following sale, and 5% in the second month following sale (the remainder are uncollectible).
If the firm targets its ending inventories to be 25% of the following month's sales, what are the budgeted purchases (in units) for June .
Purchases Budget = Required production for sales - opening inventory of raw materials + closing inventory of raw materials = Raw materials required
June's Production Budget
Required production for sales = .............................................19,000 units
less: Beginning inventory (25% of June's sales) =............... 4,750 units
Add: Required Ending Inventory (25% of July's sales) = ...4,500 units
Raw materials required for purchase in June =.................. 18,750 units
Answer:
18,750 units
Explanation:
the firm estimates in monthly ending inventories at 25% of next month's sales:
ending inventory May = 19,000 x 25% = 4,750 units
units sold during June = 19,000 units
ending inventory June = 18,000 x 25% = 4,500 units
total purchases for June = 19,000 + 4,500 - 4,750 = 18,750 units
Sales forecast:
month   units sold   price p/ unit   total sales    cash      credit
April     15,000         $3        $45,000    $22,500   $13,500
May     17,000         $3        $51,000    $25,500   $22,050
June    19,000         $3         $57,000    $28,500   $25,875
July     18,000         $3         $54,000   $27,000   $26,025
