Shamrock Shades operates in ma·kiosks throughout the southwestern US Shamrock pu

Question

Shamrock Shades operates in ma·kiosks throughout the southwestern US Shamrock purchases sunglasses tom bu k disc ters and sells the sun asses n emal kiosks Shamrock is in the process of budgeting for the coming year and has projected sales of $360,000 for January, $440,000 for February, $600,000 for March, and $640,000 for April Shamrock's desired ending Inventory is 55 percent of the following month's cost of goods sold. Cost of goods sold is expected to be 45 percent of sales. Required: Compute the required purchases for each month of the first quarter (January-March) Required Purchases

Explanation / Answer

January February March Budgeted sales 360000 440000 600000 Budgeted cost of goods sold 162000 198000 270000 Add: Desired ending inventory 108900 148500 158400 Total needs 270900 346500 428400 Les: Beginning inventory 89100 108900 148500 Required purchases 181800 237600 279900

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