QUESTION 14 (18 marks total)

Priestly Pty Ltd is an importer of a vital aeroplane engine component called a Shiny Widget (SW).Sales for March 2020 were 20,000 units and the number of units sold is expected to rise by 10% per month in 2020. The required ending inventory per month is estimated at 4,000 units plus 25% of the next month's unit sales. The cost of importing SWs is currently $8 per unit, but due to import taxes is expected to rise to $10 in June 2020. Inventory at 31st March 2020 is 15,000 SW units. Purchases are paid for in the month of purchase.

Round your calculations to the nearest whole dollar, and round up to the nearest whole unit where necessary.

Required:

a Purchases, Cost of Sales and Inventory Budget for the second Quarter of 2020 (April-June). Show clearly the purchases required in units and dollars for each month, and the totals for the quarter.