Shown below is the sales forecast of Buddy Trading for the last quarter of 200C.

	Units
October	12,000
November	11,000
December	36,000

The inventory of merchandise on October 1 was 3,000 units. Sales for January are estimated to be 15,000 units. The company wants to have an inventory at the end of each month which is equal to 30% of next month's expected sales. The merchandise cost is P4.00 per unit.

1. How many units of the merchandise will be purchased in October?
2. How many units of merchandise will be purchased in the last quarter?
3. How much is the budgeted purchases of merchandise for the month of November?

 

II. Sales for March of Alang Company are budgeted at P400,000 and are made at a gross profit rate of 20% of sales. The beginning and ending inventories are P70,000 and P100,000, respectively. The accounts payable on March 1 is P120,000 and is expected to increase by P55,000 at the end of the month.

4. How much payments for merchandise will be made in March?

III. Sales of Silang Company for December are budgeted at P120,000 with a gross profit rate of 33 1/2% of cost of sales. The inventory of merchandise will decrease by P10,000 and the accounts payable will Increase by P40,000 by the end of the month.

5.  How much payments for merchandise will be made in December?

Answer rating: 100% (QA)

I Buddy Trading How many units of the merchandise will be purchased in October Expected sales in November 11000 units Desired inventory at the end of November 30 of expected sales in December 030 3600... View the full answer