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Purchases budget preparation
Kaloy Enterprises, a merchandising firm engaged in selling empty drums, is preparing its monthly budget for the next quarter. Budgeted sales of empty drums are as follows:
March 200 units
April 250 units
May 300 units
June 400 units
July 350
Because of the difficulty of finding suppliers of empty drums, as well as the problem of transporting teh same from supplier's place to Kaloy's store, it set a policy of keeping in stock an inventory equal to 40% of the next month's budgeted sales.
Required:
Problem 1: Prepare the purchases budget for Kaloy Enterprises for the quarter ended June 30 with details shown for each month.
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