Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $16.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,600 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July 8,020 August 10,990 September 8,460 October 9,010 November 6,480 December 5,160 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September. DAWES DESIGNS Merchandise Purchases Budget For the Period Ended March 31 (in units) July August September Units to be purchased ?? ?? ?? Estimated cost $ ?? $ ?? $ ??
Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $16.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,600 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July 8,020 August 10,990 September 8,460 October 9,010 November 6,480 December 5,160 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September. DAWES DESIGNS Merchandise Purchases Budget For the Period Ended March 31 (in units) July August September Units to be purchased ?? ?? ?? Estimated cost $ ?? $ ?? $ ??
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...
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Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $16.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,600 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months:
| July | 8,020 |
|---|---|
| August | 10,990 |
| September | 8,460 |
| October | 9,010 |
| November | 6,480 |
| December | 5,160 |
Required:
a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September.
|
DAWES DESIGNS
|
|||
|
Merchandise Purchases Budget
|
|||
|
For the Period Ended March 31
|
|||
|
(in units)
|
|||
|
July
|
August
|
September
|
|
|
Units to be purchased
|
?? | ?? | ?? |
|
Estimated cost
|
$
?? |
$
?? |
$
?? |
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