Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume the following data pertains to ABC Company Estimated average selling price per unit $10.00 Estimated units to be sold in 8-2009 1,000.00 Estimated increase
Assume the following data pertains to ABC Company | ||||
Estimated average selling price per unit | $10.00 | |||
Estimated units to be sold in 8-2009 | 1,000.00 | |||
Estimated increase in unit sales | 10% | |||
Month | 8 | 9 | 10 | 11 |
Units | 1,000 | 1,100 | 1,210 | 1,331 |
Selling price per unit | ?$10.00 | ?$10.00 | ?$10.00 | ?$10.00 |
Total estimated sales | $ 10,000.00 | $ 11,000.00 | ?$12,100.00 | ?$13,310.00 |
Assume | ||||
Cost of goods sold (CGS) | 65% | of sales | ||
Month | 8 | 9 | 10 | 11 |
Estimated CGS | $6,500.00 | $7,150.00 | $7,865.00 | $8,651.50 |
Assume | ||||
Beginning inventory? | $2,100.00 | |||
Ending inventory | 20% | of next month CGS |
Find the purchases needed for August
1. | Between $5,200 and $5,300 | |
2. | Between $7,200 and $7,300 | |
3. | Between $5,800 and $5,900 | |
4. | Between $8,00 and $8,100 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started