Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April May June July August 230 250 220 170 230 Each candle costs $12. The ending inventory policy is 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $3,150. a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign. Budgeted unit sales Plus: Ending inventory Less: Beginning inventory Budgeted purchases (units) Merchandise Purchases Budget (Candles) For the Quarter Ending June 30 April May June Total

Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April May June July August 230 250 220 170 230 Each candle costs $12. The ending inventory policy is 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $3,150. a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign. Budgeted unit sales Plus: Ending inventory Less: Beginning inventory Budgeted purchases (units) Merchandise Purchases Budget (Candles) For the Quarter Ending June 30 April May June Total

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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