Posted: June 6th, 2016
Michael learned from talking with Jayne that the supplier is so focused on making quality sweatshirts that many times the shirts are not available for several days. She encouraged Michael to maintain an ending inventory of shirts equal to 25% of the next quarter’s sales. Prepare a shirt purchases budget for shirts using the format provided. Sweats Galore, Inc. Shirt Purchases Budget For the Year Ended December 31, 2013 Quarter 1 2 3 4 Year Shirts to be silk-screened Plus: Desired ending inventory Total shirts required Less: Beginning inventory Total shirts needed Cost per shirt Total cost of shirt purchases 6. Prepare a schedule of expected payments for purchases. Sweats Galore, Inc. Schedule of Expected Payments for Purchases For the Year Ended December 31, 2013 Quarter 1 2 3 4 Accounts payable 1/1/13 –0– First quarter Second quarter Third quarter Fourth quarter
Place an order in 3 easy steps. Takes less than 5 mins.