Purchases Budget Tiger Drug Store carries a variety of health and beauty aids, including 500-count...
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Accounting
Purchases Budget
Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below.
Unit Sales
Dollar Sales
January
160
$1,440
February
150
1,350
March
170
1,530
April
180
1,620
May
200
1,800
June
190
1,710
The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next months projected sales. On January 1, 24 bottles of vitamins were in inventory.
Required: 1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can. Tiger Drug Store Merchandise Purchases Budget January February March April May Unit sales Desired EI Total needed Less: BI Unit purchases 2. If vitamins are priced at cost plus 80 percent, what is the dollar cost of purchases for each month of your purchases budget? January $ February March lllll April May
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