Lexi Company budgets unit sales of 1,200,000 in April, 1,290,000 in May, 470,000 in June, and 1,520,000 in July. Beginning inventory on April 1 is 360,000 units, and the company wants to have 30% of next month’s unit sales in inventory at the end of each month. The merchandise cost per unit is $0.50. Prepare a merchandise purchases budget for the months of April, May, and June.
Lexi Company budgets unit sales of 1,200,000 in April, 1,290,000 in May, 470,000 in June, and 1,520,000 in July. Beginning inventory on April 1 is 360,000 units, and the company wants to have 30% of next month’s unit sales in inventory at the end of each month. The merchandise cost per unit is $0.50. Prepare a merchandise purchases budget for the months of April, May, and June.
Chapter7: Budgeting
Section: Chapter Questions
Problem 4EA: One Device makes universal remote controls and expects to sell 500 units in January, 800 in...
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Lexi Company budgets unit sales of 1,200,000 in April, 1,290,000 in May, 470,000 in June, and 1,520,000 in July. Beginning inventory on April 1 is 360,000 units, and the company wants to have 30% of next month’s unit sales in inventory at the end of each month. The merchandise cost per unit is $0.50. Prepare a merchandise purchases budget for the months of April, May, and June.
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