Pantheon Company Has Prepared the Following Forecasts of Monthly Sales

question 42

Essay

Pantheon Company has prepared the following forecasts of monthly sales:
$\begin{array}{lcccc}&\underline{ \text { July } } &\underline{ \text { August } }&\underline{ \text { September } }&\underline{ \text { October } }\\\text { Sales (in units) } &4,500 &5,300 &4,000 & 3,700\\\end{array}$
Pantheon has decided that the number of units in its inventory at the end of each month should equal 25% of the next month's sales.The budgeted cost per unit is $30.
(1)How many units should be in July's beginning inventory?
(2)What amount should be budgeted for the cost of merchandise purchases in July?
(3)How many units should be purchased in September?

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Definitions:

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