Question: border: 0px; height: 0px; margin: 0px; padding: 0px; width: 707px> border: 0px; height: 0px; margin: 0px; padding: 0px; width: 707px> - A sales budget is

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A sales budget is given below for one of the products

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manufactured by Vincent, Ltd.

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Month/Sales Budget in Units

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July/18,000

August/20,000

September/24,000

October/26,000

November/19,000

December/16,000

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The inventory of

finished goods at the end of each month must be

equal to 5,000

units plus 10% of the next month's sales.

On June 30, the

finished goods inventory totaled 6,800 units.

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Each unit of product requires three ounces of a special

liquid extract known as SV-6. Sometimes the extract is in

short supply; for this reason, the company has a policy of

maintaining an inventory at the end of each month equal to one

half of the next month's production needs. This requirement was met

on July 1 of the current year.

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Required: Prepare a budget showing the quantity of SV-6 to be

purchased for

September.

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