Question
Managerial Accounting Doolittle Pte Ltd manufactures and sells headscarves. The following is the company's sales budget for the upcoming 4 months of 2019. The s
Managerial Accounting
Doolittle Pte Ltd manufactures and sells headscarves. The following is the company's sales budget for the upcoming 4 months of 2019. The sales (in units) is 17,000 for september, 25,000 for october, 14,000 for november, and 20,000 for december. The sales (in dollars) is $170,000 for september, $250,000 for october, $140,000 for november, and $200,000 for december. In order to meet the above sales targets, Doolittle intends to purchase the headscarvesfrom an external supplier at $24 each.
Doolittle's policy is to maintain an ending inventory balance of 25% of the next month's sales. What is the budgeted purchases (in dollars) for November 2019? Show all your workings clearly.
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