Asked by Susan Hudak on Jul 02, 2024

verifed

Verified

A department store has budgeted sales of 12,000 men's coats in September.Management wants to have 6,000 coats in inventory at the end of the month to prepare for the winter season.Beginning inventory for September is expected to be 4,000 coats.What is the dollar amount of the purchase of suits if each coat has a cost of $75?

A) $750,000.
B) $900,000.
C) $1,050,000.
D) $1,200,000.
E) $1,350,000.

Purchase of Suits

Purchase of suits refers to the acquisition of formal clothing items, recorded as a business expense if used for professional purposes.

Men's Coats

Clothing items designed specifically for men to wear over their other garments for warmth or protection.

Department Store

A large retail establishment offering a wide range of consumer goods across different product categories under one roof.

  • Comprehend the calculation of budgeted purchases through the analysis of sales forecasts, inventory objectives, and production requirements.
verifed

Verified Answer

JP
Jashan PreetJul 03, 2024
Final Answer :
C
Explanation :
To meet the sales and ending inventory goals, the store needs to have a total of 12,000 (sales) + 6,000 (ending inventory) = 18,000 coats. Subtracting the beginning inventory of 4,000 coats, the store needs to purchase 14,000 coats. At a cost of $75 each, the total purchase amount is 14,000 coats * $75 = $1,050,000.