Precious Stones Limited is a retail jeweler. Most of the firm's business is in jewelry and watches. The firm's average gross profit ratio for
jewelry and watches is and respectively. The sales forecast for the next two months for each product category is as follows:
The company's policy, which is expected to be achieved at the end of April, is to have ending inventory equal to of the next
month's cost of goods sold.
Required:
a Calculate the cost of goods sold for jewelry and watches for May and June.
b Calculate a purchases budget, in dollars, for each product for the month of May.
Complete this question by entering your answers in the tabs below.
Required
Required B
Calculate a purchases budget, in dollars, for each product for the month of May.
Note: Do not round intermediate calculations.
