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There is one error on the following Purchases Budget. You can assume all bolded numbers are correct. Using the relationships you know exist on this
There is one error on the following Purchases Budget. You can assume all bolded numbers are correct. Using the relationships you know exist on this budget, which number is incorrect?
PURCHASES BUDGET | June | July | August | September | Quarter |
Budgeted Sales | 5,000 | 12,000 | 8,000 | 9,000 | 29,000 |
Desired Ending Inventory | 3,000 | 2,000 | 2,250 | 2,500 | 2,500 |
Units Required | 8,000 | 14,000 | 10,250 | 11,500 | 31,500 |
Beginning Inventory | 1,250 | 3,000 | 2,000 | 2,250 | 3,000 |
Need to Purchase | 6,750 | 11,000 | 8,250 | 9,250 | 28,500 |
Cost per Unit | $ 6 | $ 6 | $ 6 | $ 6 | $ 6 |
Total Cost of Purchases | $ 40,500 | $ 66,000 | $ 49,500 | $ 55,500 | $ 171,000 |
Cash Payments for May Purchases | $ 19,125 | $ - | $ - | $ - | $ - |
Cash Payments for June Purchases | $ 10,125 | $ 30,375 | $ - | $ - | $ 40,500 |
Cash Payments for July Purchases | x | $ 16,500 | $ 49,500 | $ - | $ 66,000 |
Cash Payments for August Purchases | x | x | $ 12,375 | $ 37,125 | $ 49,500 |
Cash Payments for September Purchases | x | x | x | $ 13,875 | $ 13,875 |
TOTAL CASH PAYMENTS FOR PURCHASES | $ 29,250 | $ 46,875 | $ 61,875 | $ 51,000 | $ 169,875 |
Group of answer choices
Units required in June
Cash payments for June purchases for the Quarter
Desired ending inventory for the Quarter
Beginning inventory for the Quarter
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