Zeller Company estimates that 2020 sales will be $40,000 in quarter 1, $48,000 in quarter 2, and

Question:

Zeller Company estimates that 2020 sales will be $40,000 in quarter 1, $48,000 in quarter 2, and $58,000 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished goods inventory equal to 10% of the next quarter's expected cost of goods sold.

Prepare merchandise purchases budget.


Instructions

Prepare a merchandise purchases budget by quarter for the first six months of 2020.

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Related Book For  book-img-for-question

Managerial Accounting Tools For Business Decision Making

ISBN: 9781119403999

5th Canadian Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

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