FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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2. Muddy Waters Industries has projected sales of its product for the next 6 months:
300 units
January
February
700 units
March
1,000 units
April
Мay
1,000 units
400 units
June
300 units
Each unit is sold at $40 per unit. The cost of goods sold is typically 40% of the month's budgeted
sales revenue. Muddy Waters tries to maintain a Finished Goods ending inventory equal to the 60%
of next month's cost of goods sold. January beginning inventories are expected to conform to
company policy. Prepare a purchase budget for March, and April
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Transcribed Image Text:2. Muddy Waters Industries has projected sales of its product for the next 6 months: 300 units January February 700 units March 1,000 units April Мay 1,000 units 400 units June 300 units Each unit is sold at $40 per unit. The cost of goods sold is typically 40% of the month's budgeted sales revenue. Muddy Waters tries to maintain a Finished Goods ending inventory equal to the 60% of next month's cost of goods sold. January beginning inventories are expected to conform to company policy. Prepare a purchase budget for March, and April
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