Purchases Budget Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below. Unit Sales Dollar Sales January 190 $1,710 February 180 1,620 March 200 1,800 April 210 1,890 May 230 2,070 June 220 1,980 The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next month’s projected sales. On January 1, 21 bottles of vitamins were in inventory. Required: Question Content Area 1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can. Tiger Drug StoreMerchandise Purchases Budget January February March April May Unit sales fill in the blank c5ee82058003fc0_1 fill in the blank c5ee82058003fc0_2 fill in the blank c5ee82058003fc0_3 fill in the blank c5ee82058003fc0_4 fill in the blank c5ee82058003fc0_5 Desired EI fill in the blank c5ee82058003fc0_6 fill in the blank c5ee82058003fc0_7 fill in the blank c5ee82058003fc0_8 fill in the blank c5ee82058003fc0_9 fill in the blank c5ee82058003fc0_10 Total needed fill in the blank c5ee82058003fc0_11 fill in the blank c5ee82058003fc0_12 fill in the blank c5ee82058003fc0_13 fill in the blank c5ee82058003fc0_14 fill in the blank c5ee82058003fc0_15 Less: BI fill in the blank c5ee82058003fc0_16 fill in the blank c5ee82058003fc0_17 fill in the blank c5ee82058003fc0_18 fill in the blank c5ee82058003fc0_19 fill in the blank c5ee82058003fc0_20 Unit purchases fill in the blank c5ee82058003fc0_21 fill in the blank c5ee82058003fc0_22 fill in the blank c5ee82058003fc0_23 fill in the blank c5ee82058003fc0_24 fill in the blank c5ee82058003fc0_25 Question Content Area 2. If vitamins are priced at cost plus 80 percent, what is the dollar cost of purchases for each month of your purchases budget? January $fill in the blank d7df0b004fecffb_1 February fill in the blank d7df0b004fecffb_2 March fill in the blank d7df0b004fecffb_3 April fill in the blank d7df0b004fecffb_4 May fill in the blank d7df0b004fecffb_5
Purchases Budget Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below. Unit Sales Dollar Sales January 190 $1,710 February 180 1,620 March 200 1,800 April 210 1,890 May 230 2,070 June 220 1,980 The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next month’s projected sales. On January 1, 21 bottles of vitamins were in inventory. Required: Question Content Area 1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can. Tiger Drug StoreMerchandise Purchases Budget January February March April May Unit sales fill in the blank c5ee82058003fc0_1 fill in the blank c5ee82058003fc0_2 fill in the blank c5ee82058003fc0_3 fill in the blank c5ee82058003fc0_4 fill in the blank c5ee82058003fc0_5 Desired EI fill in the blank c5ee82058003fc0_6 fill in the blank c5ee82058003fc0_7 fill in the blank c5ee82058003fc0_8 fill in the blank c5ee82058003fc0_9 fill in the blank c5ee82058003fc0_10 Total needed fill in the blank c5ee82058003fc0_11 fill in the blank c5ee82058003fc0_12 fill in the blank c5ee82058003fc0_13 fill in the blank c5ee82058003fc0_14 fill in the blank c5ee82058003fc0_15 Less: BI fill in the blank c5ee82058003fc0_16 fill in the blank c5ee82058003fc0_17 fill in the blank c5ee82058003fc0_18 fill in the blank c5ee82058003fc0_19 fill in the blank c5ee82058003fc0_20 Unit purchases fill in the blank c5ee82058003fc0_21 fill in the blank c5ee82058003fc0_22 fill in the blank c5ee82058003fc0_23 fill in the blank c5ee82058003fc0_24 fill in the blank c5ee82058003fc0_25 Question Content Area 2. If vitamins are priced at cost plus 80 percent, what is the dollar cost of purchases for each month of your purchases budget? January $fill in the blank d7df0b004fecffb_1 February fill in the blank d7df0b004fecffb_2 March fill in the blank d7df0b004fecffb_3 April fill in the blank d7df0b004fecffb_4 May fill in the blank d7df0b004fecffb_5
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 19E: Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Purchases Budget
Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below.
| Unit Sales | Dollar Sales | |
| January | 190 | $1,710 |
| February | 180 | 1,620 |
| March | 200 | 1,800 |
| April | 210 | 1,890 |
| May | 230 | 2,070 |
| June | 220 | 1,980 |
The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next month’s projected sales. On January 1, 21 bottles of vitamins were in inventory.
Required:
Question Content Area
1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can.
| January | February | March | April | May | |
|---|---|---|---|---|---|
| Unit sales | fill in the blank c5ee82058003fc0_1 | fill in the blank c5ee82058003fc0_2 | fill in the blank c5ee82058003fc0_3 | fill in the blank c5ee82058003fc0_4 | fill in the blank c5ee82058003fc0_5 |
| Desired EI | fill in the blank c5ee82058003fc0_6 | fill in the blank c5ee82058003fc0_7 | fill in the blank c5ee82058003fc0_8 | fill in the blank c5ee82058003fc0_9 | fill in the blank c5ee82058003fc0_10 |
| Total needed | fill in the blank c5ee82058003fc0_11 | fill in the blank c5ee82058003fc0_12 | fill in the blank c5ee82058003fc0_13 | fill in the blank c5ee82058003fc0_14 | fill in the blank c5ee82058003fc0_15 |
| Less: BI | fill in the blank c5ee82058003fc0_16 | fill in the blank c5ee82058003fc0_17 | fill in the blank c5ee82058003fc0_18 | fill in the blank c5ee82058003fc0_19 | fill in the blank c5ee82058003fc0_20 |
| Unit purchases | fill in the blank c5ee82058003fc0_21 | fill in the blank c5ee82058003fc0_22 | fill in the blank c5ee82058003fc0_23 | fill in the blank c5ee82058003fc0_24 | fill in the blank c5ee82058003fc0_25 |
Question Content Area
2. If vitamins are priced at cost plus 80 percent, what is the dollar cost of purchases for each month of your purchases budget?
| January | $fill in the blank d7df0b004fecffb_1 |
| February | fill in the blank d7df0b004fecffb_2 |
| March | fill in the blank d7df0b004fecffb_3 |
| April | fill in the blank d7df0b004fecffb_4 |
| May | fill in the blank d7df0b004fecffb_5 |
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