A buyer had an inventory of $93,000 on August 1 and a planned EOM stock of $120,000. Planned sales for the department were $65,000, and planned markdowns for the month were $5,690. As of August 1, the buyer had merchandise on order of $32,000 at retail to be delivered during the month. Planned initial markup was 48.5%. Calculate the buyer's OTB at cost as of August 1. a. $33,830.35 b. $65,690.00 c. $11,690.00 d. $19,925 e. $38,690.00
Q: Torres Company budgets merchandise purchases of $15,800 in January, $17,600 in February, and $22,200…
A: Cash payment is the amount of the payment expected to be made by the entity for the purchases of the…
Q: Shadee Corp. expects to sell 560 sun visors In May and 320 In June. Each visor sells for $12.…
A: CASH COLLECTION FROM CUSTOMER Cash Collection from Customer is one of the Important Part of Cash…
Q: Skysong Company uses the gross profit method to estimate inventory for monthly reporting purposes.…
A: Ending inventory consists of the cost of all commodities that have not yet been sold and are still…
Q: Shadee Corporation expects to sell 550 sun shades In May and 380 In June. Each shades sells for $17.…
A: Total cash receipts in a budget refer to the sum of all the cash inflows or revenues that an…
Q: 10. The children's department has an opening inventory on May 1 of $48,500 at cost, with a markup of…
A: Markup on opening inventory= $ 48500*42%= $ 20370 markup on purchased merchandise= $ 38000*46% = $…
Q: Victory Enterprise manufactures cabinets. Projected sales in units are as follows: October – 4.600…
A: We have to compute the goods produced in December Month WN-1 Computation of opening inventory,…
Q: XYZ Co. has forecasted July sales of 1,100 units. The company maintains ending inventory equal to…
A: Production budget is one of useful budget being prepared in business. It shows how many units needs…
Q: es Shadee Corporation expects to sell 540 sun shades in May and 450 in June. Each shades sells for…
A: The sales budget is prepared to estimate the sales revenue for the current period. The cash…
Q: Tiny Corp has the following information: Inventory at the end of May, for example, was only 40…
A: Solution: Number of units that Tiny must produce in June and July are present in the following…
Q: Shadee Corporation expects to sell 600 sun shades in May and 450 in June. Each shades sells for $11.…
A: The budget is prepared to estimate the requirements for the future period. The cash collection…
Q: Victor Company expects to sell 9,000 units for $180 each for a total of $1,620,000 in January and…
A: Here in this question, we are required to calculate inventory, purchases and cost of goods sold.…
Q: The following information for Dorado Corporation relates to the three-month period ending September…
A: The last in first out is an inventory valuation method, according to this method, the cost of goods…
Q: Sunlight Company forecasts purchases of 30,000 widgets in June. It sells the widget at $14.00 per…
A: Production budget is used to estimate the units should be produced for the sale. It can be…
Q: MAXI Co. has the following information: *Projected sales for four (4) months are as follows:…
A: Budgets are the forecasts or estimates that are made for future period of time. It can be sales…
Q: Required: Calculate Shadee's total cash receipts for August and September, Note: Do not round your…
A: Cash budget is prepared by a business entity to anticipate the expected cash requirements for the…
Q: Abc retailing company prices it's products by adding 30% to its cost.abc anticipates sales of $…
A: Cost of the inventory:- It includes the purchase of inventory less discount received which also…
Q: All sales are made on credit terms of net 30 days and are collected the following month and no bad…
A: Income statement means a statement which shows the expenses and revenue of the organisation during a…
Q: Outdoor Company expects to sell 6,500 units for $175 each for a total of $1,137,500 in January and…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: es Shadee Corporation expects to sell 560 sun shades in May and 410 in June. Each shades sells for…
A: CASH BUDGETA cash budget is an estimation of the cash flows of a business over a specific period of…
Q: The planned initial markup in a department, as indicated on the merchandise plan, is 42.5%. The…
A: OTB means open to buy , this strategy helpful for retailer to buy a product with estimated money and…
Q: The home buyer is planning their basic towel assortment for the fall season. The sales plan is…
A: The Basic Stock approach of inventory planning establishes a consistent baseline level of inventory…
Q: Mario's Record Shop, a retail store, has an average gross profit ratio of 30 percent. The sales…
A: The purchases budget can be calculated using the following formula: Purchases = (Cost of Sales +…
Q: IRWIN TECH sales in June were 400,000 units. Sales are expected to increase by 2% each month during…
A: Material Budget: It budgets how much raw materials the company requires to meet budgeted…
Q: At the end of September a company has cash balance of $800, trade receivables of $12000 and trade…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
Q: Bookworm Corporation maintains ending inventory for each month at 5% of the following month's sales.…
A: Units produced in March = Units sold in March + Desired Ending inventory - Beginning inventory…
Q: Shadee Corporation expects to sell 590 sun shades in May and 400 in June. Each shades sells for $19.…
A: Lets understand the basics.Budget is the forecast or estimate made for future period. Expected cash…
Q: Tony's Fashions forecasts sales of $303,000 for the quarter ended December 31. The company's gross…
A: Cost of goods sold means the cost of goods which has been actually sold out during the year. When we…
Q: Flex-Tite manufactures plastic parts. The inventory policy at Flex-Tite is to hold inventory equal…
A: Units available for sale are the units in beginning inventory and the production or purchases during…
Q: Croy Incorporated has the following projected sales for the next five months: Month Sales in Units…
A: Production budget:— This budget is prepared to estimate the number of units to be produced for…
Q: Croy Incorporated has the following projected sales for the next five months: Sales in Month Units…
A: Direct Material -The term "direct material" describes raw materials that are utilized directly in a…
Q: Samuelson has a beginning inventory balance on January 1 of 12,000 units and desires an ending…
A: Given information: Beginning inventory on January 1 is 12,000 units, End balancing of 20% of the…
Q: CO, SRL anticipates the following sales in the given months: March 42,000 units April 59,000 units…
A: The manufacturing companies have to plan the required production levels for future so as to meet the…
Q: A buyer had an inventory at the beginning of the month of $120,000 and a planned EOM stock of…
A: Markup refers to the variance between the selling price and cost. It is the percentage of profit…
Q: Shadee Corporation expects to sell 570 sun shades in May and 440 in June. Each shades sells for $12.…
A: CASH BUDGET A cash budget is an estimation of the cash flows of a business over a specific period…
Q: Shadee Corp. expects to sell 600 sun visors in May and 440 in June Each visor sells for $14Shadee's…
A: The budget process involves an estimation of expected expenses or revenues relating to a particular…
Q: he warehouse has projected sales for June through September of 56,700, 68,900, 70,200, and 54,300.…
A: 46% are collected in month of sales51% are collected in next month2% are collected in second…
Q: In August, Joplin Designs sold $510,000 of merchandise; all sales were in cash.The cost of sales for…
A: Record the journal entries for the monthly sales, cost of sales:
Q: Ben Company has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000…
A: Information given in the above question is as follows: Sale forecast for the next quarter are given…
Q: Croy Inc. has the following projected sales for the next five months: Month Sales in Units April…
A: Budgeted production means how much units needs to be produced to achieve sales target and keeping…
Q: Osage Incorporated has actual sales for May and June and forecast sales for July, August, September,…
A: Material purchase budget :— This budget is prepared to estimate the number of units and cost of…
Q: next month's sales. How many mattresses should be produced in the first quarter of 2019?
A: Production Budget The production budget calculates the number of units of products manufactured by a…
Q: Mesh Merchandising Company expects to purchase $86,000 of materials in July and $118,000 of…
A:
Q: Croy Inc. has the following projected sales for the next five months: Month Salen in Unita 3,850…
A: Following are the solutions to given problems
Q: Nyanza, Incorporated anticipates sales of 55,000 units, 53,000 units, and 56,000 units in July,…
A: Units to be produced in July54,400Explanation:Step 1:Calculation of the numbers of units plan to…
Q: Shadee Corporation expects to sell 510 sun shades in May and 350 in June. Each shades sells for $13.…
A: Cash Collection: It implies the process of collecting cash from the customers to whom the company…
Q: ing finished goods inver
A: Particulars October November December January Sales (in units) A. 4600 5000 4200 6000 +Closing…
Q: A company budgets the following merchandising purchases: Aprit $70.000, May $90,000; June: $60,000…
A: The accounts payable represents the amount due to suppliers during the period. The purchase of…
Q: (Production schedule) The projected sales, in units,for Einstein Inc. By month for the first four…
A: Ending inventory = 1/2 of next month estimated sales January = 12,000*1/2 = 6,000 units February =…
Step by step
Solved in 2 steps
- On January 1 the company had 330 widgets in finished good inventory. The company policy is to maintain an inventory of 15% of next montha sales. The company forecast the following sales: Jan. 2,200 Feb. 2,800 March 3,500 April 4,000 Determine the required production for January?Croy Incorporated has the following projected sales for the next five months: Month April May June July August Sales in Units 3,530 3,815 4,530 4,120 3,990 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials cost $2.80 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,673 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted production for April, May, and June. Note: Do not round your intermediate calculations and round your final answers to the nearest whole number. June Budgeted Production (Units) April MayAll sales are made on credit terms of net 30 days and are collected the following month and no bad debts are anticipated. The accounts receivable on the balance sheet at the end of September thus will be collected in October. The October sales will be collected in November, and so on. Inventory on hand represents a minimum operating level (or “safety” stock), which the company intends to maintain. Cost of goods sold average 80 percent of sales. Inventory is purchased in the month of sale and paid for in cash. Other cash expenses average 7 percent of sales. Depreciation is $10,000 per month. Assume taxes are paid monthly and the effective income tax rate is 40 percent for planning purposes. The annual interest rate on outstanding long-term debt and bank loans (notes payable) is 12%. There are no capital expenditures planned during the period, and no dividends will be paid. The company’s desired end-of-month cash balance is $80,000. The president hopes to meet any cash shortages during…
- The trailer company exspects to sell 9000 for $155 each for a total of $1,395,000 in January and 4500 units for $225 each for a total of $1,012,500 in February. The company exspects the cost of goods sold to average 70% of sales revenue, and the company exspects to sell 4700 units in march for $290 each. Trailer's target ending inventory is $9000 plus 50% of next months cost of goods sold. Prepare Trailer's inventory, purchases, and cost of goods sold budget for January and February. Trailer Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January february cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchasesMNO Company forecast sales in units for July to November as follows: Units JULY - 4000 aUGUST - 4300 SEPTEMBER - 4500 OCTOBER - 4700 NOVEMBER - 5000 MNO Company would like to maintain 200 units in its ending inventory at the end of each month starting July. Ending inventory for the month of June is 150 units. Beginning inventory at the start of January amounts to 100 units. 1. How many units should MNO Company produce for the month of July to fulfill the expected sales of the company?The beginning inventory is expected to be 3,100 cases. Expected sales are 13,300 cases, and the company wishes to begin the next period with an inventory of 2,100 cases. The number of cases the company must purchase during the month is
- Melissa reviewed her six-month plan for Orchard Creek's Children's Accessory Department, including the actual performance for August and September. She also observed the department's current performance from October 1 through October 15. In her midmonth analysis, Melissa observed the following: Planned sales for October were $7,891 Actual sales from October 1 through October 15 were $3,529 The value merchandise on-order scheduled to arrive before the end of October is $2,749 Planned markdown for October was 1,560 Actual markdown taken from October 1 through October 15 was $715 Stock on hand as of October 15 is valued at $22,160 Planed EOM for October were $18,272 Markup % is 61.5 % What is the open-to-buy remaining for the month of October? Please calculate 1) OTB at Retail and 2) OTB at Cost Edit View Insert Format Toole T-LI.For the Spring season, a department has planned: Sales at $2,500,000 Markdowns at 32.5% Shortages at 1.8% Employee discounts 5.5% The department had an opening inventory at retail of $580,000 and a CMU % for the period of 58.5%. Closing inventory of $500,000 at retail is planned for the end of Spring period. Planned Spring gross margin of 47.5%. Calculate the cumulative markup for TMH, and The markup for new purchaseMAXI Co. has the following information: *Projected sales for four (4) months are as follows: July-20,000 units; August -35,000 units ; September-25,000; October-30,000. Sales price per unit is $180 *Plans are to have a finished goods inventory end equal to 20% of the unit sales for next month. There was 4,000 units in beginning inventory on July 1. *Three (3) kilos of materials are required per unit produced. Every kilo of material is $20. Raw material inventory must be equal to 30% of the next month's needs . Desired ending inventory for September is 25,200 kilos and beginning inventory was 20,700 kilos. *Each unit requires 0.60 hours of direct labor and the average wage rate is $16 per hour. *Variable overhead rate is $3.50 per direct labor hour. There is also a fixed overhead of $22,000 per month. *The company pays 3% commission on sales. *Company has a monthly fixed and selling expenses as follows: Rent-$6,000 ; Utilities-$1,200 ; Advertising-$400: Office Salaries-$35,000.…
- FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Type of Box Direct material required per 100 boxes: Paperboard ($0.30 per pound) Corrugating medium ($0.15 per pound). Direct labor required per 100 boxes ($18.00 per hour). Indirect material Indirect labor Utilities Property taxes Insurance Depreciation. Total C $12,150 95,850 31,500 21,000 16,000. 33,500 $210,000 Total 40 pounds 30 pounds 0.25 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 400,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel. Advertising $115,500 23,500…Narai Co. has a desired ending inventory of 30% of the next months forecasted sales. In turn, their cost of goods sold is 60%, and their forecasted sales for the months of March, April, May, June, and July are as follows: $750,000, $880,000, $700,000, $800,000, and $900,000 respectively. Purchases for the months of February and March were $500,000 and $360,000 and their purchases are paid as follows: 10% during the month of the purchase 80% in the next month and the final 10% in the next month. Required: Prepare budget schedules for the months of April, May, and June for required purchases and also for disbursements for purchases.Shadee Corporation expects to sell 590 sun shades in May and 360 in June. Each shades sells for $15. Shadee's beginning and ending finished goods inventories for May are 80 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. It expects the following unit sales for the third quarter. July August September 545 450 430 Sixty percent of Shadee's sales are cash. Of the credit sales, 52 percent is collected in the month of the sale. 40 percent is collected during the following month, and 8 percent is never collected. Required: Calculate Shadee's total cash receipts for August and September Note: Do not round your intermediate calculations. Round your answers to the nearest whole dollar. Total Cash Receipts August September