Question - Budgeted sales of gloves for Perfect Fit Hands for the first six months of the year 2014 are as follows:
Months Unit Sales
January 700,000
February 820,000
March 760,000
April 720,000
May 1,280,000
June 1,500,000
The beginning inventory for 2014 is 210,000 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 $7 per unit.
Required: Prepare a purchases budget in units and dollars for each month, January through May.