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Question: ABC Inc. prepared the following sales budget:
Month
Budgeted Sales
Sept
$6,000
October
$13,000
Nov
$12,000
Dec
$14,000
The expected gross profit rate is 40% and the inventory at the end of January was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold.
What are the total purchases budgeted for October?
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What is the equivalent units completed for materials and conversion at the beginning of the year, respectively? Assume that both types of costs are incurred
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