106) The Markey Company prepared the following sales budget:

Month Budgeted Sales

March$250,000

April265,000

 May255,000

June272,500

July262,500

In addition, the gross profit rate is 40 percent and the desired inventory level is 30 percent of next month’s sales.

Required: Prepare a purchases budget for April through June.

107) Bergstrom Corporation prepared the following sales budget:

   Month    Budgeted Sales

June$136,000

July144,000

August148,000

September152,000

October156,000

The cost of goods sold percentage is 65 percent and the desired inventory level is 25 percent of next month’s sales.

Required: Prepare a purchases budget for July through September.

108) Carey Company prepared the following purchases budget:

  Month Budgeted Purchases

January$115,000

February95,000

March100,000

April110,000

May105,000

Purchases are paid for in the following manner:

10 percent in the month of purchase

50 percent in the month after purchase

40 percent two months after purchase

Re



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