Assumes that Jimenez Company management, to prevent running out of inventory, decides that the final inventory should always be 25% of the cost of what is projected for next month. The cost of what is normally sold is equal to 70% sales. Projected sales in October were $250,000 and the Initial Inventory will be $0 by October 1. Remember that to determine the final inventory for december you must consider the sales and the cost of the projected sales of next January, these will be $432,000 and $ 302,400, respectively.

Required:

a. Prepare the budget for inventory purchases.

The suppliers of Jimenez Company require that 65% of inventory purchases be paid in the month in which the purchase is made and 35% be paid in the month following the month of purchase.

Required:

b. Prepare the Payment for Inventory Purchases Schedule

Inventory Purchases Budget November December October Cost of what is budgeted Sales) Add: Desired Final Inventory of the cost of what is sold next month) Necessary inventory Menos: Inventario inicial Cantidad a comprar