Prepare a purchases budget for Graham Murray for the periods January-June, July-December and for the calendar year.

 

Use the following data:

Budgeted sales income (in $000s) is:

Jan - Jun	2,200
Jul - Dec	3,600
Jan - Jun (following year)	2,800

Selling price per unit is 200% of cost price.

The value of opening inventory for each period should be 25% of the budgeted cost of sales for that period.

Purchases Budgets for This Year (First Half, Second Half and Total)

Expected Sales	Current Year	Next Year	Current Year
Jan-June	July-Dec	Jan-June	TOTAL
COGS
Add Closing Inventory +
Goods available
Less Opening Inventory -
Purchases