Morty industries has projected sales of its product for the next 6 months: Jan 300 units, Feb 700 units, march, 1000 units, april 900 units, may 400 units, june 300 units. each unit is sold at $50 per unit. the cost of good sold is typically 35% of the following month's budgeted sales revenue. Morty tries to maintain a finished goods ending inventory equal to the 40% of next month's cost of goods sold. January beginning inventories are expected to conform to company policy. prepare a purchase budget for March and April.

Morty industries has projected sales of its product for the next 6 months: Jan 300 units, Feb 700 units, march, 1000 units, april 900 units, may 400 units, june 300 units. each unit is sold at $50 per unit. the cost of good sold is typically 35% of the following month's budgeted sales revenue. Morty tries to maintain a finished goods ending inventory equal to the 40% of next month's cost of goods sold. January beginning inventories are expected to conform to company policy. prepare a purchase budget for March and April.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...

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