Assignment Rationale:

The assignment reenforces the creation of operating and financial budgets that are a part of the master budget.

Assignment Objectives:

Creation of budgets within the Master Budget.

Understanding forecasted data for decision making.

Assignment Questions:

A department store sells men's suits. The store expects to sell $100$ suits in March and $200$ suits in April. At the beginning of March there were $30$ suits in the merchandising inventory and the company desires $20\%$ of next month's sales to be available at the end of March. How many suits will they need to purchase in March?

Liu Electronics budgeted sales of $$200,000$ for the month of November; cost of goods sold is equal to $40\%$ of sales. Beginning inventory for November was $$15,000$ and ending inventory for November should be $$22,000.$ How much is the budgeted Cost of Goods Sold for November?

Refer to the same facts in #$2$ above, how much is Liu Electronics budgeted purchases for November?