Purchases Budget

Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below.

	Unit Sales	Dollar Sales
January	150	$1,350
February	140	1,260
March	160	1,440
April	170	1,530
May	190	1,710
June	180	1,620

The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next months projected sales. On January 1, 24 bottles of vitamins were in inventory.

Required:

1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can.

Tiger Drug Store
Merchandise Purchases Budget
	January	February	March	April	May
Unit sales
Desired EI
Total needed
Less: BI
Unit purchases

2. If vitamins are priced at cost plus 80 percent, what is the dollar cost of purchases for each month of your purchases budget?

January
February
March
April
May