Merchandise purchases budget problem

Assignment Help Accounting Basics

Reference no: EM13159905

Central drug store carries a variety of health and beauty aids, including elastic ankle braces. The sales budget for ankle braces for the first six months or the year is as follows:

Unit sales dollar sales

January 150 $1,200
February 140 1,120
March 145 1,160
April 160 1,280
May 200 1,600
June 260 2,080

The owner of central dug believes that ending inventories should be sufficient to cover 20 percent of the next month's projected sales. On January 1, there were 84 ankle braces in inventory.

Required:

1. Prepare a merchandise purchases budget in unit of ankle braces for as many months as you can

2. If ankle braces are priced at cost plus 60 percent, what is the dollar cost of purchases for each month of your purchase budget?

Reference no: EM13159905

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