Unformatted text preview: by cost of the merchandise to complete the merchandise purchases budget. For example, assume The Sunny Beach T-Shirt Company plans to sell 25,000 T-shirts during quarter one, 10,000 during quarter two, 18,000 during quarter three, and 7,500 during quarter four. Given the timing of shipments, it maintains an inventory at the end of each quarter equal to 10% of the next quarter's sales. At a cost of $8 per T-shirt, the company's second quarter merchandise purchases budget is $86,400....
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This note was uploaded on 11/16/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.
- Spring '09