Annie's Homemade buys branded t-shirts from a supplier for $12.00 each and sells them to customers for $20.00 apiece. Next year expects to sell an average of 50 t-shirts per month and hopes the following year's unit sales will grow by 20%. This year's ending inventory includes 120 t-shirts and the company expects next year's ending inventories to equal 25% of the following year's sales. Required: Prepare a merchandise purchases budget for next year. Answer is not complete. Budgeted cost of goods sold Add desired ending merchandise inventory Total needs Less beginning merchandise inventory Required purchases
Annie's Homemade buys branded t-shirts from a supplier for $12.00 each and sells them to customers for $20.00 apiece. Next year expects to sell an average of 50 t-shirts per month and hopes the following year's unit sales will grow by 20%. This year's ending inventory includes 120 t-shirts and the company expects next year's ending inventories to equal 25% of the following year's sales. Required: Prepare a merchandise purchases budget for next year. Answer is not complete. Budgeted cost of goods sold Add desired ending merchandise inventory Total needs Less beginning merchandise inventory Required purchases
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sagar
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![Annie's Homemade buys branded t-shirts from a supplier for $12.00 each and sells them to customers for $20.00 apiece. Next year, it
expects to sell an average of 50 t-shirts per month and hopes the following year's unit sales will grow by 20%. This year's ending
inventory includes 120 t-shirts and the company expects next year's ending inventories to equal 25% of the following year's sales.
Required:
Prepare a merchandise purchases budget for next year.
Answer is not complete.
Budgeted cost of goods sold
Add desired ending merchandise
inventory
Total needs
Less beginning merchandise inventory
Required purchases](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c1b19ff-0877-4381-b945-46a1e90def6a%2Ff12b46c9-8823-4101-bae4-5df43d63eade%2Fmrre1zg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Annie's Homemade buys branded t-shirts from a supplier for $12.00 each and sells them to customers for $20.00 apiece. Next year, it
expects to sell an average of 50 t-shirts per month and hopes the following year's unit sales will grow by 20%. This year's ending
inventory includes 120 t-shirts and the company expects next year's ending inventories to equal 25% of the following year's sales.
Required:
Prepare a merchandise purchases budget for next year.
Answer is not complete.
Budgeted cost of goods sold
Add desired ending merchandise
inventory
Total needs
Less beginning merchandise inventory
Required purchases
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