Marwan Corporation prepared the following sales budget Month

Marwan Corporation prepared the following sales budget: Month June uly August September october Budget Sales $133,000 146,000 150,700 155,400 160,300 The cost of goods sold percentage is 70 percent and the desired inventory level is 20 percent of next month\'s sales Prepare a purchases budget for July through September MARWAN CORPORATION Purchase Budget July August September Total

Solution

working note:

let us know the cost of goods sold

the following is the production budget:

		20% of cost of goods sold
june (133,000 *70%)	$93,100	18,620
july (146,000*70%)	102,200	20,440
august (150,700*70%)	105,490	21,098
september (155,400*70%)	108,780	21,756
october (160,300*70%)	112,210	22,442