Question

The beginning inventory is expected to be 2,000 cases. Expected sales are 10,000 cases, and the company wishes to begin the next period with an inventory of 1,000 cases. The number of cases the company must purchase during the month is:

Answer 1

Answer:

$9000

Explanation:

he $10,000 expected sales represent the cost of goods sold COGS.

Calculating COGS is by the equal the formula

COGS = opening stock + purchase - closing stock

in this case

$10,000 = $2000 + Purchases - $1000

$10,000 = $2000-$1000 + purchases

Purchases = $10,000 -$1000

Purchases =$9,000