Create an inventory purchase budget

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Reference no: EM1375528

Executive officers of Shavez Company are wrestling with their budget for next year. The subsequent are two different sales estimates given by two different sources. Sales manager 1st quarter 380,000, 2nd quarter 310,000; 3rd quarter 280,000 4th quarter 480,000. Marketing consultant 1st quarter 520,000; 2nd quarter 460,000; 3rd quarter 410,000 and 4th quarter650, 000. Shavezs past experience shows that cost of goods sold is about 60 % of sales revenue. The company tries to maintain 10 percent of the next of the next quarters expected cost of goods sold as the present quarters ending inventory. This years ending inventory. This years ending inventory is 29,000.Next years ending inventory is budgeted to be $30,000.

(A) Create an inventory purchase budget using the sales manager's estimate.

(B) Create an inventory purchases budget using marketing consultants estimate.

Reference no: EM1375528

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