Question: Assume a business sells sunglasses. Estimated sales are: July: 15,000 units, August: 20,000 units and September: 10,000 units and October: 5,000 units. Management requires that there should be 20% of the next month's sales available at the end of each month. July will begin with 3,000 units on hand. The sunglasses cost $12.00 per unit. Complete the following schedule
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July |
August |
September |
October |
| Unit Sales |
15,000 |
20,000 |
10,000 |
5,000 |
| Required ending inventory |
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|
|
|
| Total Units needed |
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|
|
|
| Beginning inventory on hand |
3,000 |
|
|
|
| Total Units to purchase |
|
|
|
|
| Cost per unit: |
12.00 |
12.00 |
12.00 |
12.00 |
| Budgeted cash requirement: |
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