Question

Chang's Jeans 'n Tees is a retailer specializing in designer jeans and T-shirts. The company expects to sell 10,000 pairs of jeans each quarter in the first two quarters, 20,000 pairs in the third quarter, and 15,000 in the fourth quarter. For T-shirts, sales are expected to be 20,000 each quarter for the first two quarters, 35,000 in the third quarter, and 25,000 in the fourth quarter. Managers would like to maintain an ending inventory equal to 25% of next quarter's sales, but they expect to have only 2,000 pairs of jeans and 3,000 T-shirts in beginning inventory.
REQUIRED
Prepare a quarterly purchases budget for jeans and T-shirts. Assume that the sales forecast for the first quarter of the following year is the same as the first quarter forecast for this year.


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  • CreatedJanuary 26, 2015
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