At March 31 Streuling Enterprises, a merchandising firm, had an inventory of 38,000
units, and it had accounts receivable totaling $85,000. Sales, in units, have been
budgeted as follows for the next four months:
Streuling's board of directors has established a new policy to commence in
April that the inventory at the end of each month should be only 40% of the units
required for the following month's budgeted sales.
The selling price is $2 per unit.
One-third of sales are paid for by customers in the month of the sale, the
balance is collected in the following month.
Complete the following second quarter budget schedules by filling in the missing
Schedule of inventory purchases:
Budgeted sales, in units
Desired ending inventory
Less beginning inventory
Required purchases, in units