Question - Projected unit sales for Astor Corp. for the last quarter of 2015 are:
|
October
|
10,000
|
|
November
|
15,000
|
|
December
|
20,000
|
|
Total
|
45,000
|
Finished goods inventory on September 30, 2015 was 3,000 units.
Projected sales for January are 25,000 units.
The sales price is $100 per unit.
The company tries to keep ending finished goods inventory of 10% of the following month's expected sales.
a) Prepare a Sales Budget in units and dollars by month (October, November and December along with the 4th quarter total).
b) Prepare a Purchases Budget in units for each month (October, November and December along with the 4th quarter total).