Purchases Budget Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below. Unit Sales Dollar Sales January 200 $1,600 February 190 1,520 March 210 1,680 April 220 1,760 May 240 1,920 June 230 1,840 The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next month's projected sales. On January 1, 22 bottles of vitamins were in inventory. Required: 1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can. Tiger Drug Store Merchandise Purchases Budget January February March April May Unit sales Desired EI Total needed Less: BI Unit purchases 2. If vitamins are priced at cost plus 60 percent, what is the dollar cost of purchases for each month of your purchases budget? January February March April May

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Purchases Budget

Purchases Budget
Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below.
Unit Sales
Dollar Sales
January
200
$1,600
February
190
1,520
March
210
1,680
April
220
1,760
May
240
1,920
June
230
1,840
The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next month's projected sales. On January 1, 22 bottles of vitamins were in inventory.
Required:
1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can.
Tiger Drug Store
Merchandise Purchases Budget
January February March April May
Unit sales
Desired EI
Total needed
Less: BI
Unit purchases
2. If vitamins are priced at cost plus 60 percent, what is the dollar cost of purchases for each month of your purchases budget?
January
$
February
March
April
May
Transcribed Image Text:Purchases Budget Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below. Unit Sales Dollar Sales January 200 $1,600 February 190 1,520 March 210 1,680 April 220 1,760 May 240 1,920 June 230 1,840 The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next month's projected sales. On January 1, 22 bottles of vitamins were in inventory. Required: 1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can. Tiger Drug Store Merchandise Purchases Budget January February March April May Unit sales Desired EI Total needed Less: BI Unit purchases 2. If vitamins are priced at cost plus 60 percent, what is the dollar cost of purchases for each month of your purchases budget? January $ February March April May
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