Prepare the monthly purchases budget

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Reference no: EM132735107

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

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.

Reference no: EM132735107

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