Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the f
ID: 2341806 • Letter: P
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 130,000 Apri 200,000 February 170,000 May 180,000 March 190,000 June250,000 Beginning inventory for 2010 is 40,000 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 $6 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: Purchase dollars:Explanation / Answer
The music shop
Purchase budget
January -May 2010
Month
January
February
March
April
May
June
Units sold
130000
170000
190000
200000
180000
250000
Add: ending inventory (units sold in next month * 40%)
68000
76000
80000
72000
100000
Unit available for sale
198000
246000
270000
272000
280000
Less: beginning inventory (last month's ending inventory become current month beginning inventory)
40000
68000
76000
80000
72000
Purchase units
158000
178000
194000
192000
208000
Purchase dollars (purchase units * $ 6)
$ 948,000
$ 1,068,000
$ 1,164,000
$ 1,152,000
$ 1,248,000
The music shop
Purchase budget
January -May 2010
Month
January
February
March
April
May
June
Units sold
130000
170000
190000
200000
180000
250000
Add: ending inventory (units sold in next month * 40%)
68000
76000
80000
72000
100000
Unit available for sale
198000
246000
270000
272000
280000
Less: beginning inventory (last month's ending inventory become current month beginning inventory)
40000
68000
76000
80000
72000
Purchase units
158000
178000
194000
192000
208000
Purchase dollars (purchase units * $ 6)
$ 948,000
$ 1,068,000
$ 1,164,000
$ 1,152,000
$ 1,248,000
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