Make a purchases budget, Make a ‘purchases budget’ for

Make a purchases budget

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Reference no: EM131930263

Production Manager, Sally, at Armidale Innovations is making a budget for the raw materials purchases for 2017. She acquired the following budgeted sales information for 2017 from the Sales Manger, Joe:

Month Budgeted Sales $

June 57,000

July 48,000

August 37,000

September 67,000

October 69,000

As per the information obtained from the Operations Manager, Kelly, the cost of goods sold rate for the company is 69% and the desired ending inventory level for each month is 31% of next month's cost of goods sold figure.

Required: Make a ‘purchases budget’ for July, August and September, 2017, showing the total for the three months in the ‘total’ column. Must use the following format/table (show supporting calculations/working separately before or after the format/table): Round all figures to the nearest dollar.

Purchases budget

July Aug Sept

Total Cost of Goods Sold……………………

Ending inventory (desired level)………

Total needed…………………….

Beginning inventory…………………..

Total purchases…………………

Reference no: EM131930263

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