Question: Crane, Inc., sells drum sets. James Smith, controller, is responsible for preparing the master budget. The sales manager has given James the following sales forecast



Crane, Inc., sells drum sets. James Smith, controller, is responsible for preparing the master budget. The sales manager has given James the following sales forecast for the coming months. April May June July Forecasted unit sales 12,000 15,000 10,000 11,000 Crane expects to have 6,000 drum sets in ending inventory on March 31. The company purchases the drum sets from its supplier for $150 each and maintains 20% of the following month's projected sales in ending inventory. Prepare Crane's inventory purchases budget for the second quarter. April May June Quarter $ $ ta ta $ ta $ April May June Total units required Budgeted unit sales Beginning inventory Budgeted unit cost Budgeted purchases, units Budgeted purchases Budgeted ending inventory $ $ ta $ $ $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
