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Robe Inc. Sells just one type of product, wedding dresses. The average selling price is $282 per dress. The company has the following sales projections for the year 20X0: Monthly sales forecasts (in units) for the year 20XX Month Quantity Month Quantity Jan 620 July 2 160 Feb 380 August 1 320 March 1 440 September 1 800 April 1 920 October 2 400 May 680 November 2 640 June 2 280 December 3 120 Also, the projected unit sales for the month of January 20X1 are 1 800 dresses. Based on previous years' statistics, 80% of sales are on credit and the rest are in cash. The cost of goods sold represents 70% of sales for each month and the ending inventory for each month is 80% of the cost of goods sold for the following month.
Required :
Problem 1- Prepare the monthly sales budget for20X0. You must show both your credit and cash sales.
Problem 2- Prepare the monthly purchases budget for 20X0.
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