Morty industries has projected sales of its product for the next 6 months: Jan 300 units, Feb 700 units, march, 1000 units, april 900 units, may 400 units, june 300 units. each unit is sold at $50 per unit. the cost of good sold is typically 35% of the following month's budgeted sales revenue. Morty tries to maintain a finished goods ending inventory equal to the 40% of next month's cost of goods sold. January beginning inventories are expected to conform to company policy. prepare a purchase budget for March and April.

Morty industries has projected sales of its product for the next 6 months: Jan 300 units, Feb 700 units, march, 1000 units, april 900 units, may 400 units, june 300 units. each unit is sold at $50 per unit. the cost of good sold is typically 35% of the following month's budgeted sales revenue. Morty tries to maintain a finished goods ending inventory equal to the 40% of next month's cost of goods sold. January beginning inventories are expected to conform to company policy. prepare a purchase budget for March and April.

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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