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Question - Purchases Budget in Units and Dollars
Budgeted sales of The Music Shop for the first six months of 2010 are as follows:
January
130,000
April
190,000
February
150,000
May
160,000
March
210,000
June
220,000
Beginning inventory for 2010 is 50,000 units. The budgeted inventory at the end of a month is 40 percent of units to be sold the following month. Purchase price per unit is $7.
Prepare a purchases budget in units and dollars for each month, January through May.
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