Answers
Working note | |||||
Feb | Mar | April | May | June | |
Budgeted Sales | 60000 | 51000 | 40000 | 70000 | 72000 |
Budgeted Cost of goods Sold | 42000 | 35700 | 28000 | 49000 | 50400 |
Desired Ending Inventory (30% of Next Month Sales) | 10710 | 8400 | 14700 | 15120 | |
Beginning Inventory | 12600 | 10710 | 8400 | 14700 | 15120 |
Purchase Budget | |||||
April | May | June | Total | ||
Cost of Goods Sold | 28000 | 49000 | 50400 | ||
Add: Ending Inventory | 14700 | 15120 | 0 | ||
Less: Beg Inventory | 8400 | 14700 | 15120 | ||
Purchase Quantity | 34300 | 49420 | 35280 | 119000 |
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