Question

Help Save & Exit Submit Check my work Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months' sales. The tiles cost $1.00 each and must be paid for in cash. The company has 28,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January February March April May June 12,200 17,700 13,900 13,700 10,300 7,700 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March. MIDLAND COMPANY Merchandise Purchases Budget For the Period Ended March 31 (in units) January February Units to be purchased Estimated cost March < Prev 2 of 3 ! Next >

Answer 1

Statement showing Purchase Budget
	Jan	Feb	Mar
Sales	12200	17700	13900
Desired Ending inventory	45300	37900	31700
	(13700+17700+13900)	(13900+13700+10300)	(13700+10300+7700)
Total Unit Needed	57500	55600	45600
Less: Beg. Invenry	28000	45300	37900
Unit to be Purchased	29500	10300	7700
Cost per Unit	$1.00	$1.00	$1.00
Purchase Cost	$29,500.00	$10,300.00	$7,700.00