Compute required purchases for each month of first quarter

Assignment Help Accounting Basics

Reference no: EM131975631

Problem

Shamrock Shades operates in mall kiosks throughout the southwestern U.S. Shamrock purchases sunglasses from bulk discounters and sells the sunglasses In the mall kiosks. Shamrock is the process of budgeting for the coming year and has projected sales of $330.000 for January, $410.000 for February, $570,000 for March, and $610,000 for April. Shamrock's desired ending inventory is 50 percent of the following month's cost of goods sold. Cost of goods sold is expected Jo be 30 percent of sales.

Required

Compute the required purchases for each month of the first quarter (January-March).

Reference no: EM131975631

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