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Kovarik Company has the following sales forecast for the next quarter: April, 4,000 units; May, 4,800...

Kovarik Company has the following sales forecast for the next quarter: April, 4,000 units; May, 4,800 units; June, 5,600 units. Sales totaled 3,200 units in March. The March ending finished goods inventory was 1,000 units. End-of-month finished goods inventory levels are planned to be equal to 30 percent of the next month's planned sales. Calculate the number of units of inventory Kovarik needs to purchase for April?

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Answer #1
Units to be purchased in April
April sales                           4,000
+Ending inventory (30% * 4,800)                           1,440
-Beginning inventory                           1,000
Units to be purchased in April                           4,440
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