Reference no: EM132705978

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 620                                   July 2 160

Feb 380                                      August 1 320            

March 1 440                              September 1 800                    

April 1 920                                     October 2 400                        

May 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 :

Question 1- Prepare the monthly sales budget for 20X0. You must show both your credit and cash sales.

Question 2- Prepare the monthly purchases budget for 20X0.