Greco Company Has Prepared the Following Forecasts of Monthly Sales

question 108

Essay

Greco Company has prepared the following forecasts of monthly sales:
$$\begin{array} { l | l | l | l | l | l } & \text { July } & \text { August } & \text { September } & \text { October } \\\hline \text { Sales (in Units) } \ldots \ldots \ldots \ldots & 4,500 & 5,300 & 4,000 & 3,700\end{array}$$ Greco 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?

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The second digit of the human hand, located between the thumb and the middle finger, often used for pointing.

Peripheral Neuropathy

A condition resulting from damage to the peripheral nerves, characterized by weakness, numbness, and pain, typically in the hands and feet.

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A condition where a person experiences an increased sensitivity to pain, often as a result of damage to nociceptors or peripheral nerves.

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