Question
Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 10% of budgeted unit sales for the following
Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 10% of budgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginning inventory on July 1 is 18,000 units. The company budgets sales of 200,000 units in October. The merchandise cost per unit is $3.
| July | August | September | |
|---|---|---|---|
| Budgeted sales units | 180,000 | 300,000 | 300,000 |
| Units to purchase | 192,000 | 300,000 | 290,000 |
Prepare the merchandise purchases budgets for the months of July, August, and September.
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Cost Accounting A Managerial Emphasis International
Authors: Charles T. Horngren, Srikant M. Datar, George Foster
11th Edition
8120323548, 978-8120323544
