Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months sales. The tiles cost $1.00 each and must be paid for in cash. The company has 29,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 11,800 February 16,900 March 12,700 April 13,400 May 9,700 June 8,200 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.

Midland Company

Merchandise Purchasing Budget for the period ended March 31 (in Units)

	January	February	March
Units to be Produced
Estimated Cost