The ABC Company Ltd. expects the following sales by months in units for the first six months of next year. 5400 January February March 5700 7500 5700 6000 4500 The company has a policy of maintaining an inventory equal to budgeted sales for the following two months. The beginning inventory reflects this policy. Each unit costs AED 10. April May June You are required to prepare purchases budget for March and April months both in units and Dirham (AED).

The ABC Company Ltd. expects the following sales by months in units for the first six months of next year. 5400 January February March 5700 7500 5700 6000 4500 The company has a policy of maintaining an inventory equal to budgeted sales for the following two months. The beginning inventory reflects this policy. Each unit costs AED 10. April May June You are required to prepare purchases budget for March and April months both in units and Dirham (AED).

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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Question

The ABC Company Ltd. expects the following sales by months in
units for the first six months of next year.
5400
January
February
5700
7500
5700
6000
4500
The company has a policy of maintaining an inventory equal to
budgeted sales for the following two months. The beginning inventory
reflects this policy. Each unit costs AED 10.
March
April
May
June
You are required to prepare purchases budget for March and April
months both in units and Dirham (AED).

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