FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Moore Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $440,000 for April and $510,000 for May. Cost of goods sold is expected to be 65% of sales. The company’s desired ending inventory is 24% of the following month’s cost of goods sold.

Compute the required purchases for April.

Moore Wholesalers
Purchases Budget
                                                           For the Month of AprilFor the Quarter EndedFor the Year Ended
                                                           Beginning InventoryBudgeted Cost of Goods SoldDesired Ending Direct MaterialsDesired Ending InventoryDirect Materials per UnitDirect Materials PurchassRequired Merchandise Purchases for AprilUnits to Be ProducedTotal Inventory Required
 
                                                           AddLess:                                                            Beginning InventoryBudgeted Cost of Goods SoldDesired Ending Direct MaterialsDesired Ending InventoryDirect Materials per UnitDirect Materials PurchassRequired Merchandise Purchases for AprilUnits to Be ProducedTotal Inventory Required
 
 
                                                           Beginning InventoryBudgeted Cost of Goods SoldDesired Ending Direct MaterialsDesired Ending InventoryDirect Materials per UnitDirect Materials PurchassRequired Merchandise Purchases for AprilUnits to Be ProducedTotal Inventory Required
 
 
                                                           AddLess:                                                            Beginning InventoryBudgeted Cost of Goods SoldDesired Ending Direct MaterialsDesired Ending InventoryDirect Materials per UnitDirect Materials PurchassRequired Merchandise Purchases for AprilUnits to Be ProducedTotal Inventory Required
 
 
                                                           Beginning InventoryBudgeted Cost of Goods SoldDesired Ending Direct MaterialsDesired Ending InventoryDirect Materials per UnitDirect Materials PurchassRequired Merchandise Purchases for AprilUnits to Be ProducedTotal Inventory Required
 
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