To determine the number of units purchased for May, we will use the given formula for ending inventory:
[tex]\[ \text{Ending Inventory} = \text{Beginning Inventory} + \text{Purchases} - \text{Units Sold} \][/tex]
First, let's extract and define the values given for May from the table:
- Beginning Inventory for May: 6700 units
- Units Sold in May: 1500 units
- The Ending Inventory for May (derived from the table) is 5500 units.
We need to find the number of Purchases (let's call it [tex]\(P\)[/tex]) for May.
The formula rearranged to solve for Purchases is:
[tex]\[ P = \text{Ending Inventory} - \text{Beginning Inventory} + \text{Units Sold} \][/tex]
Now, substituting the given values:
[tex]\[ P = 5500 \, (\text{Ending Inventory}) - 6700 \, (\text{Beginning Inventory}) + 1500 \, (\text{Units Sold}) \][/tex]
Perform the operations step by step:
1. [tex]\( 5500 - 6700 = -1200 \)[/tex]
2. [tex]\( -1200 + 1500 = 300 \)[/tex]
Thus,
[tex]\[ P = 300 \][/tex]
Therefore, the number of units purchased for May is 300 units.
