1. Angela owns a merchandising business that sells imported mugs from other Asian countries. Angela purchases these mugs from an outside supplier once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter without having to incur stock outs and loss of customers. Angela has forecasted that unit sales for each quarter will be as follows: 1*Quarter – 15,000 2nd Quarter – 25,000 3rd Quarter - 35,000 4 Quarter – 40,000 Angela has initiated a policy that 10% of the anticipated sales for the month must be kept as a minimum balance of the previous month's ending inventory. As of the 1"Quarter, there are 15,000 mugs unsold and Angela plans to keep 18,000 mugs by the end of the fourth quarter. Each mugs costs P75.00. a. Prepare a purchases production budget expressed in quantities to be purchased. b. Prepare a purchases production budget expressed in peso values. (Hint. multiple units by the amount)
Angela owns a merchandising business that sells imported mugs from other Asian countries. Angela purchases these mugs from an outside supplier once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter without having to incur stock outs and loss of customers. Angela has
1st Quarter – 15,000
2nd Quarter – 25,000
3rd Quarter - 35,000
4th Quarter – 40,000
Angela has initiated a policy that 10% of the anticipated sales for the month must be kept as a minimum balance of the previous month’s ending inventory. As of the 1st Quarter, there are 15,000 mugs unsold and Angela plans to keep 18,000 mugs by the end of the fourth quarter. Each mugs costs P75.00.
a. Prepare a purchases/production budget expressed in quantities to be purchased.
b. Prepare a purchases/production budget expressed in peso values.
(Hint: multiple units by the amount)
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