White Products wishes to purchase goods in one month for sale in the next. On Ma
ID: 2463065 • Letter: W
Question
White Products wishes to purchase goods in one month for sale in the next. On March 31, the company has 8,000 portable music players in stock, although sales for the next month (April) are estimated to total 8,600 players. Total sales of players are expected to be 7,000 in May and 7,400 in June.
Portable music players are purchased at a wholesale price of $45. The supplier has a financing arrangement by which White Products pays 60 percent of the purchase price in the month when the players are delivered and 40 percent in the following month. White purchased 10,000 players in March.
Estimate purchases (in units) for April and May
Estimate the cash required to make purchases in April and May
White Products wishes to purchase goods in one month for sale in the next. On March 31, the company has 8,000 portable music players in stock, although sales for the next month (April) are estimated to total 8,600 players. Total sales of players are expected to be 7,000 in May and 7,400 in June.
Portable music players are purchased at a wholesale price of $45. The supplier has a financing arrangement by which White Products pays 60 percent of the purchase price in the month when the players are delivered and 40 percent in the following month. White purchased 10,000 players in March.
Explanation / Answer
Answer:(a)
Answer:(b) Payment for these purchases are made as follows:
White Products Merchandise Purchase Budget For the Period Ended 31 May Particulars April May Estimated sales 8600 7000 Add: Estimated ending inventory 7000 7400 Total merchandise needs 15600 14400 Less: beg inventory 8000 7000 Merchandise to be purchased 7600 7400Related Questions
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