Keggler's Supply is a merchandiser of three different products. The company's February 28 Inventories are footwear, 19,000 units; sports equipment, 81,500 units; and apparel, 49,000 units. Management believes each of these inventories is too high. As a result, a new policy dictates that ending inventory in any month should equal 29% of the expected unit sales for the following month. Expected sales in units for March, April, May, and June follow. Footwear Sports equipment Apparel Required: 1. Prepare a merchandise purchases budget (in units) for each product for each of the months of March, April, and May. June Budgeted Sales in Units March April May 15,000 24,500 31,000 34,500 71,500 88,000 95,000 89,500 40,500 37,500 33,000 24,000 FOOTWEAR Budgeted sales for next month Ratio of ending inventory to future sales Required units of available merchandise KEGGLER'S SUPPLY Merchandise Purchases Budget For March, April, and May March Budgeted purchases SPORTS EQUIPMENT Budgeted sales for next month Ratio of ending inventory to future sales Budgeted purchases Required units of available merchandise APPAREL Budgeted sales for next month Ratio of ending inventory to future sales Budgeted purchases Required units of available merchandise April May

Acme Ltd. manufactures point of sale terminals used by businesses to process transactions. At the close of business on 30 September, the company had 450 terminals in inventory. The company's policy is to maintain an ending inventory of terminals equal to 30 per cent of next month's sales. Each terminal manufactured requires 25 minutes of assembly and inspecting time at a cost of 70 cents per minute. The company expects the following sales activity: October 8 000 units November 12 000 units December 13 000 units January 10 000 units What is the total projected direct labour cost for November and December? O $302 000 O None of the other alternatives $210 000 O $427 000

All sales are made on credit terms of net 30 days and are collected the following month and no bad debts are anticipated. The accounts receivable on the balance sheet at the end of September thus will be collected in October. The October sales will be collected in November, and so on. Inventory on hand represents a minimum operating level (or “safety” stock), which the company intends to maintain. Cost of goods sold average 80 percent of sales. Inventory is purchased in the month of sale and paid for in cash. Other cash expenses average 7 percent of sales. Depreciation is $10,000 per month. Assume taxes are paid monthly and the effective income tax rate is 40 percent for planning purposes.  The annual interest rate on outstanding long-term debt and bank loans (notes payable) is 12%. There are no capital expenditures planned during the period, and no dividends will be paid. The company’s desired end-of-month cash balance is $80,000. The president hopes to meet any cash shortages during…

The trailer company exspects to sell 9000 for $155 each for a total  of $1,395,000 in January and 4500 units for $225 each for a total of $1,012,500 in February. The company exspects the cost of goods sold to average 70% of sales revenue, and the company exspects to sell 4700 units in march for $290 each. Trailer's target ending inventory is $9000 plus 50% of next months cost of goods sold. Prepare Trailer's inventory, purchases,  and cost of goods sold budget for January and February. Trailer Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28   January february cost of goods sold     Plus: Desired ending merchandise inventory     Total merchandise inventory required     Less: Beginning merchandise inventory     Budgeted purchases