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 27,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:
January 13,100
February 17,000
March 13,100
April 14,000
May 9,500
June 8,000
Required: a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.
Answer-a&b-
MIDLAND COMPANY | |||
MERCHANDISE PURCHASE BUDGET | |||
FOR THE PERIOD ENDED MARCH 31 | |||
PARTICULARS | JANUARY | FEBRUARY | MARCH |
Estimated unit sales | 13100 | 17000 | 13100 |
Add- Estimated sales for next three months | 17000+13100+14000= 44100 | 13100+14000+9500= 36600 | 14000+9500+8000= 31500 |
Total inventory needs | 57200 | 53600 | 44600 |
Less- Beginning inventory | 27000 | 44100 | 36600 |
Units to be purchased (a) | 30200 | 9500 | 8000 |
Unit cost (b) | $1.00 | $1.00 | $1.00 |
Estimated purchase cost (c=a*b) | $30200 | $9500 | $8000 |
Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It...
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 12,100 February...
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 12,100 February...
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 27,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 12,000 February...
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 27,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January February March...
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 $1.25 each and must be paid for in cash. The company has 29,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 12,900 February...
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 30,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 11,400 February...
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 29,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January February March...
6. 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 $1.25 each and must be paid for in cash. The company has 30,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 12,000...
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: 5 oints Skipped...
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...