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.