Question

Gadget toys expects the following sales in units in the last quarter (Oct-Dec) of 2019: Oct...

Gadget toys expects the following sales in units in the last quarter (Oct-Dec) of 2019: Oct 22,000; Nov 29,000; Dec 33,000 and 30,000 for January 2020. The business has inventory of 24,000 finished units on hand at 1st October and has a target finished inventory of 50% of the following month’s sales units. The units are purchased for $10 and sold for $16 each. Payment for purchases is made in the month following purchase. Accounts payable for purchases as at 30 September was $130,000.


Prepare the purchases budget for the quarter October – December 2019 (showing each month and the total for the quarter) You do need to include the expected payments for purchases.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Gadget Lubricants expects the following sales in units in the last quarter (Oct-Dec) of 2019: Oct...
Gadget Lubricants expects the following sales in units in the last quarter (Oct-Dec) of 2019: Oct 22,000; Nov 29,000; Dec 33,000 and 30,000 for January 2020. The business has inventory of 24,000 finished units on hand at 1st October and has a target finished inventory of 50% of the following month’s sales units. The units are purchased for $10 and sold for $16 each. Payment for purchases is made in the month following purchase. Accounts payable for purchases as at...
Tempting Toys manufactures and distributes a number of products to retailers. One of these products, Playclay,...
Tempting Toys manufactures and distributes a number of products to retailers. One of these products, Playclay, requires five pounds of material A135 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter—July, August, and September. Peak sales of Playclay occur in the third quarter of each year. To keep production and shipments moving smoothly, the company has the following inventory requirements:    a. The finished goods inventory on hand at the end...
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic...
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: The finished goods inventory on hand at the end of each...
Rensing Ltd. estimates sales for the second quarter of 2020 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2020 will be as follows. Month Units April 2,500 May 2,440 June 2,340 The target ending inventory of finished products is as follows. March 31 2,000 April 30 2,230 May 31 2,190 June 30 2,310 2 units of material are required for each unit of finished product. Production for July is estimated at 2,690 units to start building inventory for the fall sales period. Rensing’s policy is to have an inventory...
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic...
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of...
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic...
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of...
Bramble Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units...
Bramble Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units April 2,600 May 2,420 June 2,320 The target ending inventory of finished products is as follows. March 31 2,010 April 30 2,270 May 31 2,100 June 30 2,360 Two units of material are required for each unit of finished product. Production for July is estimated at 2,670 units to start building inventory for the fall sales period. Bramble’s policy is to have an inventory...
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units April 2,590 May 2,440 June 2,400 The target ending inventory of finished products is as follows. March 31 2,000 April 30 2,290 May 31 2,150 June 30 2,310 2 units of material are required for each unit of finished product. Production for July is estimated at 2,660 units to start building inventory for the fall sales period. Rensing’s policy is to have an inventory...
Rensing Ltd. estimates sales for the second quarter of 2020 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2020 will be as follows. Month Units April 2,500 May 2,400 June 2,300 The target ending inventory of finished products is as follows. March 31 2,000 April 30 2,200 May 31 2,100 June 30 2,300 2 units of material are required for each unit of finished product. Production for July is estimated at 2,600 units to start building inventory for the fall sales period. Rensing’s policy is to have an inventory...
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters...
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: The finished goods inventory on hand at the end of each month...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT