Purchases Budget in Units and Dollars

Budgeted sales of The Music Shop for the first six months of 2010 are as follows:

MonthUnit SalesMonthUnit SalesJanuary130,000April190,000February160,000May190,000March190,000June230,000

Beginning inventory for 2010 is 40,000 units. The budgeted inventory at the end of a month is 20 percent of units to be sold the following month. Purchase price per unit is $3.

1. Advise how you would create a purchases budget in units and dollars for each month, January through May.

The Music Shop

Purchases Budget

January - May, 2010

January Purchase units =

February Purchase units =

March Purchase units =

April Purchase units =

May Purchase units =

January Purchase dollars =

February Purchase dollars =

March Purchase dollars =

April Purchase dollars =

May Purchase dollars =