A merchandising company is working on their Inventory Purchase Budget to determine how much inventory will need to be purchased for the month of July. The following information has been gathered for this budget. Prepare an Inventory Purchase Budget for the month of July and for your answer below, enter the dollar value of how much this company would expect in Inventory Purchases for this month. (Round all calculations to a level that makes the most sense for this question. Enter your final answer rounded to the nearest whole dollar/input code: 0) Budgeted Sales June: $25,142 July: $20,091 August: $34,504 Cost of Goods Sold 33% of Sales Inventory requirement End each month with 25% of the following month's budgeted Cost of Goods Sold. (This requirement is expected for both the beginning and end of July.)
A merchandising company is working on their Inventory Purchase Budget to determine how much inventory will need to be purchased for the month of July. The following information has been gathered for this budget. Prepare an Inventory Purchase Budget for the month of July and for your answer below, enter the dollar value of how much this company would expect in Inventory Purchases for this month. (Round all calculations to a level that makes the most sense for this question. Enter your final answer rounded to the nearest whole dollar/input code: 0) Budgeted Sales June: $25,142 July: $20,091 August: $34,504 Cost of Goods Sold 33% of Sales Inventory requirement End each month with 25% of the following month's budgeted Cost of Goods Sold. (This requirement is expected for both the beginning and end of July.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:A merchandising company is working on their Inventory Purchase Budget to
determine how much inventory will need to be purchased for the month of
July.
The following information has been gathered for this budget. Prepare an
Inventory Purchase Budget for the month of July and for your answer below,
enter the dollar value of how much this company would expect in Inventory
Purchases for this month. (Round all calculations to a level that makes the most
sense for this question. Enter your final answer rounded to the nearest whole
dollar/input code: 0)
Budgeted Sales
June: $25,142
July: $20,091
August: $34,504
Cost of Goods Sold 33% of Sales
Inventory
requirement
End each month with 25%
of the following month's
budgeted Cost of Goods
Sold. (This requirement is
expected for both the
beginning and end of July.)
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