Question

A department store has budgeted sales of 12,000 men's coats in September. Management wants to have 6,000 coats in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,000 coats. What is the dollar amount of the purchase of suits if each coat has a cost of $75?

Answer 1

Answer:

$1,050,000

Explanation:

Budgeted purchases= coats in inventory + budgeted sales- Beginning inventory expected coats

Budgeted purchases = 6,000 + 12,000 - 4,000 = 14,000 suits

14,000 suits x $75/suit = $1,050,000

Therefore the dollar amount of the purchase of suits if each coat has a cost of $75 is $1,050,000