In preparing monthly budgets for the third quarter a


Question: 1. In preparing monthly budgets for the third quarter, a company budgeted sales of 120 units for July and 140 units for August. Management wants each month's ending inventory to be 60% of next month's sales. The June 30 inventory consists of 50 units. How many units of product for July acquisition should the merchandise purchases budget specify for the third quarter?

(a) 84,

(b) 120,

(c) 154, or

(d) 204.

2. How do the operating budgets for merchandisers and manufacturers differ?

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