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Budgeted sales of gloves for Hands On for the first six months of the year 2013 are as follows:
Months
Unit Sales
January
700,000
February
820,000
March
760,000
April
720,000
May
1,280,000
June
1,500,000
The beginning inventory for 2013 is 200,000 units. The budgeted inventory at the end of a month is 25 percent of units to be sold the following month. Purchase price per unit is $7 per unit.
Required:
Prepare a purchases budget in units and dollars for each month, January through May.
Because of a recent increase in the number of neck injuries incurred by high school football players, the Department of Commerce designed a study to evaluate the strength of football helmets worn by high school players in the United States.
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