The Drew Company has the following information: $\begin{array}{lc}
\text { Month } & \text { Budgeted Sales } \
\text { March } & \$ 150,000 \
\text { April } & 153,000 \
\text { May } & 151,000 \
\text { June } & 254,500 \
\text { Julv } & 252,500
\end{array}$ In addition, the gross profit rate is 40% and the desired ending inventory level is 20% of next month's sales.
Required: Prepare a purchases budget for April through June.

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The Answer of The Drew Company has the following information: $\begin{array}{lc}
\text { Month } & \text { Budgeted Sales } \
\text { March } & \$ 150,000 \
\text { April } & 153,000 \
\text { May } & 151,000 \
\text { June } & 254,500 \
\text { Julv } & 252,500
\end{array}$ In addition, the gross profit rate is 40% and the desired ending inventory level is 20% of next month's sales.
Required: Prepare a purchases budget for April through June.

The Drew Company Has the Following Information In Addition, the Gross Profit Rate Is 40% and the }