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Problem - Robe Inc. Sells just one type of product, wedding dresses. The average selling price is $282 per dress. The company has the following sales projections for the year 20X0:
Monthly sales forecasts (in units) for the year 20XX
Month
Quantity
Jan
1,620
July
2,160
Feb
1,380
August
1,320
March
1,440
September
1,800
April
1,920
October
2,400
May
1,680
November
2,640
June
2,280
December
3,120
Also, the projected unit sales for the month of January 20X1 are 1,800 dresses. Based on previous years' statistics, 80% of sales are on credit and the rest are in cash. The cost of goods sold represents 70% of sales for each month and the ending inventory for each month is 80% of the cost of goods sold for the following month.
Required -
1- Prepare the monthly sales budget for 20X0. You must show both your credit and cash sales.
2- Prepare the monthly purchases budget for 20X0.
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