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PURCHASES BUDGET: Balmforth Products, Inc. sells a product called a Bik. Budgeted Sales of Biks...

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Accounting

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PURCHASES BUDGET: Balmforth Products, Inc. sells a product called a Bik. Budgeted Sales of Biks for the next five months is as follows: The company wants to maintain monthly ending inventories of Biks equal to 20% of the following month's production needs. Balmforth sells Biks for $5.00 per unit. The cost of sales is 60% of sales price (or $3.00 per unit). The company wants to prepare a Merchandise Purchases Budget. REQUIRED: Compute the cost of Biks to be purchased in April and May

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