Question

Raider-X Company forecasts sales of 18,000 units for April. Beginning inventory is 3,000 units. The desired ending inventory is 30% higher than the beginning inventory. How many units should Raider-X purchase in April?

Short answer

The total number of units purchased by Raider-X for the month of April is18,900 units.

Step-by-step solution

Following information is given in the question

The forecasted sales for the month of April are 18,000 units

Beginning inventory is 3,000 units

Desired ending inventory is 30% higher than the beginning inventory

Calculation of number of units purchased in April

Raider-X Company
Purchases budget
For the month of April
Particulars	Amount (in units)
Budgeted ending inventory $(\mathbf{3}\mathbf{,}\mathbf{000}\mathbf{+}(\mathbf{3}\mathbf{,}\mathbf{000}\mathbf{\times }\mathbf{30}\mathbf{\%}))$	3,900
Add: Budgeted sales	18,000
Required units	21,900
Less: Beginning inventory	3,000
Number of units to be purchased	18,900