Problem
Purchases Budget in Units and Dollars
Budgeted sales of The Music Shop for the first six months of 2010 are as follows:
|
Month
|
Unit Sales
|
Month
|
Unit Sales
|
|
January
|
140,000
|
April
|
200,000
|
|
February
|
140,000
|
May
|
160,000
|
|
March
|
200,000
|
June
|
220,000
|
Beginning inventory for 2010 is 60,000 units. The budgeted inventory at the end of a month is 30 percent of units to be sold the following month. Purchase price per unit is $4.
Prepare a purchases budget in units and dollars for each month, January through May.