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The Aliena Corporation buys automotive equipment for $1,800 and sells it for $2,

ID: 2379055 • Letter: T

Question

The Aliena Corporation buys automotive equipment for $1,800 and sells it for $2,500; the company has the following sales forecast: 100 units for October, 120 units in November, 200 units in December and 400 units in January.  Ending inventory for each month should be 10% of the next month

The Aliena Corporation buys automotive equipment for $1,800 and sells it for $2,500; the company has the following sales forecast: 100 units for October, 120 units in November, 200 units in December and 400 units in January. Ending inventory for each month should be 10% of the next month's sales. The company had 20 units on hand at September 30th. How many units should be purchased in November?

Explanation / Answer

Inventory available for November month which need not be purchased=12

Equipment to be purchased for November =0.9*120+(inventory dor december)

=108+ (0.1*200)

=128