Question

Purchases Budget Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles...

  1. Purchases Budget

    Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below.

    Unit Sales Dollar Sales
    January 160         $1,440        
    February 150         1,350        
    March 170         1,530        
    April 180         1,620        
    May 200         1,800        
    June 190         1,710        

    The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next month’s projected sales. On January 1, 21 bottles of vitamins were in inventory.

    Required:

    1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can.

    Tiger Drug Store
    Merchandise Purchases Budget
    January February March April May
    Unit sales
    Desired EI
    Total needed
    Less: BI
    Unit purchases

    2. If vitamins are priced at cost plus 80 percent, what is the dollar cost of purchases for each month of your purchases budget?

    January $
    February   
    March   
    April   
    May   
Business   Accounting   
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