Question

Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the first six...

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 140,000 April 200,000
February 140,000 May 160,000
March 200,000 June 220,000

Beginning inventory for 2010 is 60,000 units. The budgeted inventory at the end of a month is 30 percent of units to be sold the following month. Purchase price per unit is $4.

Prepare a purchases budget in units and dollars for each month, January through May.

The Music Shop
Purchases Budget
January - May, 2010
January February March April May
Purchase units: Answer Answer Answer Answer Answer
Purchase dollars: $Answer $Answer $Answer $Answer $Answer

Homework Answers

Answer #1
January february march april may
purchase units:
Budgeted sales $140000 $140000 $200000 $200000 $160000
Plus: desired ending inventory $42000 (30%×140000) $60000 (30%×200000) $60000 (30%×200000) $48000 (30%×160000) $66000 (30%×220000)
Total inventory need 182000 200000 260000 248000 226000
Less: begining inventory (60000) (42000) (60000) (60000) (48000)
Purchase unit 122000 158000 200000 188000 178000
purchase dollars:
Per unit price $4 $4 $4 $4 $4
Purchase dollars $488000 $632000 800000 $752000 $712000

I have given detailed solution to your problem, in case of any query you can comment in the comment box and

PLEASE DONT FORGET TO GIVE A THUMBS UP

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the first six...
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 140,000 April 200,000 February 140,000 May 160,000 March 200,000 June 220,000 Beginning inventory for 2010 is 60,000 units. The budgeted inventory at the end of a month is 30 percent of units to be sold the following month. Purchase price per unit is $4. Prepare a purchases budget in units and...
Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the first six...
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 130,000 April 190,000 February 160,000 May 190,000 March 190,000 June 230,000 Beginning inventory for 2010 is 40,000 units. The budgeted inventory at the end of a month is 20 percent of units to be sold the following month. Purchase price per unit is $3. Prepare a purchases budget in units and...
Thunder Road Guitars specializes in vintage, used, and rare guitars. Assume budgeted sales for the first...
Thunder Road Guitars specializes in vintage, used, and rare guitars. Assume budgeted sales for the first six months of the year are as follows: Month Unit Sales Month Unit Sales January 15 April 18 February 12 May 22 March 16 June 20 Beginning inventory for the year is 7 units. The budgeted inventory at the end of a month is 50% of units to be sold the following month. Purchase price per unit is $800. Prepare a purchases budget in...
Caba Corporation’s sales budget for the first half of the year is as follows: Budgeted Sales...
Caba Corporation’s sales budget for the first half of the year is as follows: Budgeted Sales January $ 115,000 February $ 198,000 March $ 220,000 April $ 250,000 May $ 210,000 June $ 290,000 Total: $ 1,283,000 Sales are 30% cash and 70% on account. Sales on account are to be collected over a three-month period, with 20% collected in the month of the sale, 65% collected in the first month following the sale, and 15% collected in the second...
The LaGrange Corporation had the following budgeted sales for the first half of the current year:...
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 60,000 $ 160,000 February $ 65,000 $ 180,000 March $ 44,000 $ 140,000 April $ 39,000 $ 124,000 May $ 49,000 $ 210,000 June $ 90,000 $ 180,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections...
Lubriderm Corporation has the following budgeted unit sales for the next six-month period: Month Unit Sales...
Lubriderm Corporation has the following budgeted unit sales for the next six-month period: Month Unit Sales June 130,000 July 100,000 August 160,000 September 200,000 October 140,000 November 180,000 There were 26,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. Five pounds of materials are required for each unit produced. Each pound of material costs $20. Raw material...
Month    Budgeted Cash Sales Budgeted Credit Sales Budgeted Cash Purchases Budgeted Credit Purchases December 8,000 21,000...
Month    Budgeted Cash Sales Budgeted Credit Sales Budgeted Cash Purchases Budgeted Credit Purchases December 8,000 21,000 January 9,000 23,000 February 11,000 25,000 March 77,800 12,000 12,000 22,000 March 68,500 12,500 12,500 23,500 May 72,000 12,300 12,300 24,500 Wages & other operating expenses are estimated as follows: Month Wages Other Expenses March 20,000 28,000 April 17,500 22,000 May 20,000 23,000  Newequipment purchased in February for $16,750 istobepaid forin April.  New furniture purchased in March for $15,000 isto be paid...
The LaGrange Corporation had the following budgeted sales for the first half of the current year:...
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 60,000 $ 160,000 February $ 65,000 $ 180,000 March $ 33,000 $ 140,000 April $ 28,000 $ 113,000 May $ 38,000 $ 210,000 June $ 90,000 $ 70,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections...
A sales budget is given below for one of the products manufactured by the Key Co.:...
A sales budget is given below for one of the products manufactured by the Key Co.: Sales Budget in Units January 20,000 February 35,000 March 60,000 April 40,000 May 30,000 June 25,000 The inventory of finished goods at the end of each month must equal 17% of the next month’s sales. On December 31, the finished goods inventory totaled 3,400 units. Each unit of product requires three specialized electrical switches. Since the production of these specialized switches by Key’s suppliers...
Webster Company has the following sales budget.       January            $200,000             February&nbsp
Webster Company has the following sales budget.       January            $200,000             February           $240,000             March               $300,000             April                  $360,000       Cost of sales is 70% of sales. Sales are collected 40% in the month of sale and 60% in the following month. Webster keeps inventory equal to double the coming month's budgeted sales requirements. It pays for purchases 80% in the month of purchase and 20% in the month after purchase. Inventory at the beginning of January is $190,000.   Webster...