The following information is provided to assist in the preparation of the Cash Budget for MugLover Pty$.$ Ltd$.$ for August and September, $20$x$1.$

$$ The forecasted sales $($$$)$ are as follows:

Months

Budgeted Sales $($$$)$

June

$ $414,000$

July

$ $408,000$

August

$ $384,000$

September

$ $432,000$

October

$ $426,000$

$$ The company wants to maintain inventory on hand at the end of each month to be $30\%$ of the estimated following month$$s sales.

$$ Purchase cost per unit is $$8.$

$$ The forecasted unit sales are as follows:

Months

Budgeted Sales $($in units$)$

June

$34,500$ units

July

$34,000$ units

August

$32,000$ units

September

$36,000$ units

October

$35,500$ units

Required:

Prepare a Purchases Budget for the months of August and September, $20$x$1.$

Totals are not required.

Answer rating: 100% (QA)

To prepare the Purchases Budget for the months of August and September 20x1 we need to calculat... View the full answer