Troy Company prepares monthly budgets. The current budget plans for a September ending inventory of 38,000 units.

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Troy Company prepares monthly budgets. The current budget plans for a September ending inventory of 38,000 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the three most recent months follow.
(1) Prepare the merchandise purchases budget for the months of July, August, and September.
(2) Compute the ratio of ending inventory to the next month€™s sales for each budget prepared in part 1.
(3) How many units are budgeted for sale inOctober?
Troy Company prepares monthly budgets. The current budget plans
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Managerial Accounting

ISBN: 978-0073379586

2010 Edition

Authors: John J. Wild, Ken W. Shaw

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