# The beginning inventory is expected to be 2,000 cases. Expected sales are 10,000 cases, and the...

## Question:

The beginning inventory is expected to be {eq}2,000 {/eq} cases. Expected sales are {eq}10,000 {/eq} cases, and the company wishes to begin the next period with an inventory of {eq}1,000 {/eq} cases. What is the number of cases the company must purchase during the month?

## Inventory:

An inventory is a product of the company which is sold at a higher price to customers. It is part of the asset of the company in the current section because inventory is expected to be sold within the year.

The formula to get the number of units sold is:

• Inventory sold = Beginning inventory + purchases - ending inventory

To determine the purchases, we make purchases the subject of the equation.

• Purchases = Inventory sold - beginning inventory + ending inventory

Here, we subtract the beginning inventory (2,000 cases) from the inventory sold (10,000 cases) and add the ending inventory (1,000 cases).

• Purchases = 10,000 cases - 2,000 cases + 1,000 cases = 9,000 cases

The number of cases the company must purchase is 9,000 cases.