Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $21.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 17,100 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July 8,520 August 11,490 September 8,960 October 9,510 November 6,980 December 5,660 Question: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September.

Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $21.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 17,100 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July 8,520 August 11,490 September 8,960 October 9,510 November 6,980 December 5,660 Question: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...

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July	8,520
August	11,490
September	8,960
October	9,510
November	6,980
December	5,660

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a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September.

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Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $16.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,600 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July 8,020 August 10,990 September 8,460 October 9,010 November 6,480 December 5,160 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September. DAWES DESIGNS Merchandise Purchases Budget For the Period Ended March 31 (in units) July August September Units to be purchased ?? ?? ?? Estimated cost $ ?? $ ?? $ ??
Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $16.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,600 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July August September October November December 8,020 10,990 8,460 9,010 6,480 5,160 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September. Units to be purchased DAWES DESIGNS Merchandise Purchases Budget For the Period Ended March 31 (in units) July August September
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