Southside Manufacturing Is Preparing Its Purchases Budget for the 3rd

question 7

Multiple Choice

Southside Manufacturing is preparing its purchases budget for the 3rd quarter of the year. The following information is given in units.
$$\begin{array} { l r } \text { Beginning inventory } & 550 \\\text { Ending inventory } & 780 \\\text { Sales forecast for second quarter } & 1390\end{array}$$
How many units should be purchased in the second quarter?

• A) 1160
• B) 1390
• C) 1620
• D) unable to calculate from information provided.

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Definitions:

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods during a specific period, indicating the efficiency of inventory management.

Inventory

The total amount of goods and materials held by a company intended for sale or used in production.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Inventory

Items held by a company for the purpose of sale or production, including raw materials, work-in-progress, and finished goods.