In September the management of The Skynard Group assembles the following data in preparation of budgeted merchandise purchases for the months of October and November.
1.Expected sales
2.Cost of sales is expected to be 60% of sales.
3.Desired ending merchandise inventory is 25% of the next month's cost of sales.
4.The beginning inventory at 1 October will be the desired amount.
Instructions: Compute the budgeted merchandise purchases for October and November. Use a columnar format with separate columns for each month.

Question

In September the management of The Skynard Group assembles the following data in preparation of budgeted merchandise purchases for the months of October and November.
1.Expected sales
  2.Cost of sales is expected to be 60% of sales.
3.Desired ending merchandise inventory is 25% of the next month's cost of sales.
4.The beginning inventory at 1 October will be the desired amount.
Instructions: Compute the budgeted merchandise purchases for October and November. Use a columnar format with separate columns for each month.

Quizplus · Accepted Answer

The Answer of In September the management of The Skynard Group assembles the following data in preparation of budgeted merchandise purchases for the months of October and November.
1.Expected sales
  2.Cost of sales is expected to be 60% of sales.
3.Desired ending merchandise inventory is 25% of the next month's cost of sales.
4.The beginning inventory at 1 October will be the desired amount.
Instructions: Compute the budgeted merchandise purchases for October and November. Use a columnar format with separate columns for each month.

In September the Management of the Skynard Group Assembles the Following