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).

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 10PB: All Temps has a policy of always paying within the discount period, and each of its suppliers...
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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).
Transcribed Image Text: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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