Question
The Penguin Company has prepared the following forecasts of monthly sales: July August September October Sales (in Units) .. 4,500 5,300 4,000 3,700 Penguin has
The Penguin Company has prepared the following forecasts of monthly sales:
|
| July | August | September | October |
| Sales (in Units) .. | 4,500 | 5,300 | 4,000 | 3,700 |
Penguin has decided that the number of units in its inventory at the end of each month should equal 25% of the next month's sales. The budgeted cost per unit is $30.
(1) How many units should be in July's beginning inventory?
(2) What amount should be budgeted for the cost of merchandise purchases in July?
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Financial and Managerial Accounting Information for Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
5th edition
978-1259317552, 1259317552, 978-0078025600, 78025605, 978-1259335013, 1259335011, 978-1259347641
