Lexi Company budgets unit sales of 1,980,000 in April, 1,240,000 in May, 600,000 in June, and 1,150,000 in July. Beginning inventory on April 1 is 230,000 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 Merchandise Purchases Budget April May June Next period budgeted sales units Ratio of inventory to future sales Total required units Units to purchase Cost per unit Cost of merchandise purchases

Lexi Company budgets unit sales of 1,980,000 in April, 1,240,000 in May, 600,000 in June, and 1,150,000 in July. Beginning inventory on April 1 is 230,000 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 Merchandise Purchases Budget April May June Next period budgeted sales units Ratio of inventory to future sales Total required units Units to purchase Cost per unit Cost of merchandise purchases

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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