Perry Company has provided the following information:
$$\begin{array} { l c }
\text { Month } & \text { Budgeted Sales } \
\text { March } & \$ 200,000 \
\text { April } & 212,000 \
\text { May } & 204,000 \
\text { June } & 218,000 \
\text { July } & 210,000
\end{array}$$ In addition,the gross profit rate is 40% and the desired inventory level is 30% of next month's cost of sales.
Required:
Prepare a purchases budget for April through June.

Question

Perry Company has provided the following information:
 $$\begin{array} { l c } 
\text { Month } & \text { Budgeted Sales } \
\text { March } & \$ 200,000 \
\text { April } & 212,000 \
\text { May } & 204,000 \
\text { June } & 218,000 \
\text { July } & 210,000
\end{array}$$ In addition,the gross profit rate is 40% and the desired inventory level is 30% of next month's cost of sales.
Required:
Prepare a purchases budget for April through June.

Quizplus · Accepted Answer

The Answer of Perry Company has provided the following information:
 $$\begin{array} { l c } 
\text { Month } & \text { Budgeted Sales } \
\text { March } & \$ 200,000 \
\text { April } & 212,000 \
\text { May } & 204,000 \
\text { June } & 218,000 \
\text { July } & 210,000
\end{array}$$ In addition,the gross profit rate is 40% and the desired inventory level is 30% of next month's cost of sales.
Required:
Prepare a purchases budget for April through June.

Perry Company Has Provided the Following Information In Addition,the Gross Profit Rate Is 40% and the Desired