Answers
Merchandise purchases budget
April | may | June | |
Next month budgeted sales | 1290000 | 520000 | 1710000 |
Ratio of inventory to future sales | 40% | 40% | 40% |
Desired ending inventory | 516000 | 208000 | 684000 |
Budgeted sales | 1680000 | 1290000 | 520000 |
Total | 2196000 | 1498000 | 1204000 |
Less: Beginning inventory | -230000 | -516000 | -208000 |
Required purchase | 1966000 | 982000 | 996000 |
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