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KPLC plans inventory levels (at cost) at the end of each month as follows: May, $275,000; June, $220,000; July, $270,000 and August, 240,000. Sales are expected to be June, $440,000: July, $350,000; August, $420,000.
Cost of goods sold is 60% of sales. Purchases in April were $250,000; May $180,000. Payments for each month's purchases are made as follows: 10% during that month; 80% the next month and the final 10% the next month.
Question 1: Prepare budget schedules for June, July and August for purchases and for disbursement for purchases
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