Adamis is a men's retailer of high-quality leather goods, primarily leather shoes and belts. The average selling price for a pair of shoes is $725 and the average selling price of a belt is $350. Planned sales for the months of October to January are as follows:

October

Shoes (pairs) ...................875

Belts ............................640

November

Shoes (pairs) ..................1,060

Belts ............................868

December

Shoes (pairs) .................. 1,835

Belts ........................... 1,246

January

Shoes (pairs) ..................215

Belts ........................... 98

Adamis's policy is to have 25 percent of next month's sales in ending inventory. On October 1, it is expected that there will be 400 pairs of shoes and 100 belts on hand. On average, pur- chasing merchandise from suppliers costs Adamis $320 for a pair of leather shoes and $130 per belt.

Required:

1. Prepare a sales budget for the period of October to December for each product line, showing units and sales revenue by month and in total for the quarter.

2. Prepare a merchandise purchasing budget for the period of October to December. Show the number of shoes and belts that must be ordered each month as well as for the quarter in total and compute the cost for each product line for each month and a total for the quarter.