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sales Question 5: Master Budgeting • Time: 30 minutes • Total: 16 marks ending invento is 30% of Gob Net Guava Inc. has the f
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Answer #1
Guava Inc.,
Purchase Budget
April May June Quarter
Budgeted cost of goods sold $35700 $28000 $49000 $112700
Add: Desired ending inventory 8400 14700 15120 15120
Inventory needed 44100 42700 64120 127820
Less: Beginning inventory -10710 -8400 -14700 -10710
Required purchases $33390 $34300 $49420 $117110

Calculation of Cost of goods sold

April= $51000*70%= $35700

May= $40000*70%= $28000

June= $70000*70%= $49000

Calculation of Desired ending inventory

April= $40000*70%*30%= $8400

May= $70000*70%*30%= $14700

June= $72000*70%*30%= $15120

Calculation of Beginning inventory

April= $51000*70%*30%= $10710

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