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Precious Stones Limited is a retail jeweler. Most of the firm's business is in jewelry...

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Accounting

Precious Stones Limited is a retail jeweler. Most of the firm's business is in jewelry and watches. The firm's average gross profit ratio for
jewelry and watches is 71% and 42%, respectively. The sales forecast for the next two months for each product category is as follows:
The company's policy, which is expected to be achieved at the end of April, is to have ending inventory equal to 160% of the next
month's cost of goods sold.
Required:
a. Calculate the cost of goods sold for jewelry and watches for May and June.
b. Calculate a purchases budget, in dollars, for each product for the month of May.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Calculate a purchases budget, in dollars, for each product for the month of May.
Note: Do not round intermediate calculations.
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