Question

Question 14 Not complece Marked out of 1.00 PFlag question Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the first six months of 2010 are as follows: Month Unit Sales Month Unit Sales January February Apri 200,000 190,000 150,000 180,000 May March June 210,000 220.000 Beginning inventory for 2010 is 60,000 units. The budgeted inventory at the end of a month is 40 percent of units to be sold the following month. Purchase price per unit is $7 Prepare a purchases budget in units.and dollars for each month, January through May The Music Shop Purchases Budget January May, 2010 February January March April May Purchase units 0 0 0 Purchase dolars 0S 0 0 S 0 0 Check

Answer 1

Correct Answer:

The Music Shop
Purchases Budget
January-May, 2018
	Jan	Feb	Mar	Apr	May
Purchase units	162,000	192,000	206,000	196,000	20,2000
Purchase Dollar (Purchase units * $7)	$ 1,134,000.00	$      1,344,000.00	$              1,442,000.00	$ 1,372,000.00	$ 1,414,000.00

Working:

The Music Shop
Purchases Budget
January-May, 2018
	Jan	Feb	Mar	Apr	May
Expected Units sales	150000	180000	210000	200000	190000
Add: Desired Ending Finished Inventory (40% of next months expected units sale)	72000	84000	80000	76000	88000
Total Required Units	222000	264000	290000	276000	278000
Less : Beginning Finished Inventory (Ending inventory for previous month will be beginning inventory for the next month)	60000	72000	84000	80000	76000
Required Production units	162000	192000	206000	196000	202000

End of answer.

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