Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months’ sales. The tiles cost $3 each and must be paid for in cash. The company has 28,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 12,400 February 17,800 March 13,200 April 14,200 May 9,600 June 7,200 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March. MIDLAND COMPANY Merchandise Purchases BudgetFor the Period Ended March 31(in units) January February March Units to be purchased ? ? ? Estimated cost ? ? ?
Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months’ sales. The tiles cost $3 each and must be paid for in cash. The company has 28,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:
| January | 12,400 | ||
| February | 17,800 | ||
| March | 13,200 | ||
| April | 14,200 | ||
| May | 9,600 | ||
| June | 7,200 | ||
Required:
a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.
MIDLAND COMPANY
Merchandise Purchases BudgetFor the Period Ended March 31(in units)
January February March
Units to be purchased ? ? ?
Estimated cost ? ? ?
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