Can you please check my work Hardy Company's cost of goods sold is consistently 60% of sales. The company plans ending merchandise inventory for each monthequal to 20% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 50% of the purchasesmade during a month is paid for in that month. Another 35% is paid for during the first month after purchase, and the remaining 15% ispaid for during the second month after purchase. Expected sales are August (actual), $325,000; September (actual), $320,000;October (estimated), $250,000; and November (estimated), $310,000.Use this information to determine October's expected cash payments for purchases.Calculate Monthly Purchases:AugustSeptemberOctoberNovemberBudgeted ending inventory76,800 $57,600 $86,400Cost of goods sold (estimated)320,000256,000192,000Required available inventory396,800313,600278,400Budgeted beginning inventory(96,000)(76,800)(57,600)Required purchases2$300,800 $236,800 $220,800Calculate Payments Made for Inventory:Purchases paid inPurchasesAugustSeptemberOctoberAfter OctoberAugust purchases24300,800 $180,480 $902,440 $30,080 $ -812,200September purchases236,800142,08071,040 $23,680%24 Calculate Monthly Purchases:AugustSeptemberOctoberNovemberBudgeted ending inventory76,800 $57,600 $86,400Cost of goods sold (estimated)320,000256,000192,000Required available inventory396,800313,600278,400Budgeted beginning inventory(96,000)(76,800)(57,600)Required purchases300,800 $236,800 $220,800Calculate Payments Made for Inventory:Purchases paid in--- ---esPurchasesAugustSeptemberOctoberAfter OctoberAugust purchases2$300,8002$180,4802$902,440 $30,080 $ -812,200September purchases236,800142,08071,040 $23,680October purchases220,800132,480 $88,3202$180,4802$1,044,520 $233,600 $ -700,200Determine October's Expected Cash Payments for Purchases.October's expected cash payments for purchases2$233,600%24%24

The answer posted is incorrect. Cost of goods sold for the month is 60% of the sales for the same…

Answered: any's cost of goods sold iS…

any's cost of goods sold iS consistently of the next month's budgeted cost of a month is paid for in that month. Anot ng the second month after purchase. E 命つro0o

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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