1.

a.

February
March
April
May
June
July

Last Year
Monthly Sales

Last Year
BOM Stock

Stock-tosales Ratio

$12,000
$14,000
$18,000
$19,000
$18,000
$19,000

$25,000
$30,000
$38,000
$40,000
$39,000
$41,000

2.08
2.14
2.11
2.10
2.16
2.15

b. Total planned sales = $100,000 X 8% = $8,000

February
10%
March
5%
April
5%
May
15%
June
30%
July
35%
c.
February EOM
$29,960
March EOM
$37,980
April EOM
$39,900
May EOM
$38,880
June EOM
$40,850
July EOM
$43,000
d. Planned purchases at retail
February 12,000 + 29,960 + 800 25,000 = 17,760
March 14,000 + 37,980 + 400 30,000 = 22,380
April 18,000 + 37,980 + 400 38,000 = 18,380
May 19,000 + 39,900 + 1200 40,000 = 20,100
June 18,000 + $38,880 + 2400 39,000 = 20,280
July 19,000 + 40,850 + 2800 41,000 = 21,650
Planned purchase at cost
February 100% - 46.4% X 17,760 = 9,519.36
March 100% - 46.4% X 22,380 = 11,995.68

800
400
400
1200
2400
2800

Planned
Monthly
BOM
Inventory
$24,960
$29,960
$37,980
$39,900
$38,880
$40,850

April 100% - 46.4% X 18,380 = -8,527.32

May 100% - 46.4% X 20,100 = -9325.40
June 100% - 46.4% X 20,280 = 10,870.08
July 100% - 46.4% X 21,650 = 11, 604.40