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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.
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.
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