**Inventory Management: Periodic Inventory System**Bins Incorporated uses the periodic inventory system. The table below details the beginning inventory and inventory purchases for the year 2020:| **Month** | **Sales Units** | **Purchases** | | ||--------------------|-----------------|---------------|----------|----------|| | | **Units** | **Cost per unit** | **Totals** || **Beginning Inventory** | | 2,240 | $5.00 | $11,200 || **January** | 2,880 | 1,960 | $7.00 | $13,720 || **February** | 3,000 | 2,080 | $5.00 | $10,400 || **March** | 2,800 | 2,720 | $7.00 | $19,040 || **Totals** | 8,680 | 9,000 | | $54,360 |**Company Projections and Payments:**- In relation to March, the company anticipates a 5% increase in the cost of goods sold for April.- The desired ending inventory balance for April is set at $2,400.- Romaguera Inc settles 60% of its purchases in cash during the purchase month and pays the remaining 40% in the subsequent month.- The accounts payable balance as of March 31 is $6,800.**Required:**Using the FIFO (First-In, First-Out) inventory valuation method, address the following questions. Round your answers to the nearest dollar.1. **What is the ending inventory balance at the end of March?** $________2. **What is the total cost of goods sold at the end of March?** $________3. **What is the amount of purchases budgeted for April?** $________4. **What is the amount of cash payments budgeted for inventory purchases in April?** $________

Name: **Inventory Management: Periodic Inventory System**Bins Incorporated
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Description: **Inventory Management: Periodic Inventory System**Bins Incorporated uses the periodic inventory system. The table below details the beginning inventory and inventory purchases for the year 2020:| **Month** | **Sales Units** | **Purchases**

FIFO or first-in, first-out, is an inventory valuation method that specifies that the inventory…

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Bins Incorporated uses the periodic inventory system. The following table shows beginning inventory and inventory purchases for 2020: Month Beginning Inventory January February March Totals Sales Units 2,880 3,000 2,800 8,680 Units 2,240 1,960 2,080 2,720 9,000 Purchases Cost per unit $5.00 $7.00 $5.00 $7.00 Totals $11,200 $13,720 $10,400 $19,040 $54,360 Relative to March, the company projects a 5 percent increase in cost of goods sold during April. The desired ending inventory balance for April is $2,400. Romaguera Inc pays cash to settle 60 percent of its purchases on account during the month of purchase and pays the remaining 40 percent in the month following the purchase. The accounts payable balance as of March 31 was $6,800. Required: Based on the FIFO inventory valuation methods answer the following questions. You may round your final answer to the nearest dollar. What is the ending inventory balance at the end of March? $ What is the total cost of goods sold at the end of March? $ What is the amount of purchases budgeted for April? $ What is the amount of cash payments budgeted for inventory purchases in April? $

Bins Incorporated uses the periodic inventory system. The following table shows beginning inventory and inventory purchases for 2020: Month Beginning Inventory January February March Totals Sales Units 2,880 3,000 2,800 8,680 Units 2,240 1,960 2,080 2,720 9,000 Purchases Cost per unit $5.00 $7.00 $5.00 $7.00 Totals $11,200 $13,720 $10,400 $19,040 $54,360 Relative to March, the company projects a 5 percent increase in cost of goods sold during April. The desired ending inventory balance for April is $2,400. Romaguera Inc pays cash to settle 60 percent of its purchases on account during the month of purchase and pays the remaining 40 percent in the month following the purchase. The accounts payable balance as of March 31 was $6,800. Required: Based on the FIFO inventory valuation methods answer the following questions. You may round your final answer to the nearest dollar. What is the ending inventory balance at the end of March? $ What is the total cost of goods sold at the end of March? $ What is the amount of purchases budgeted for April? $ What is the amount of cash payments budgeted for inventory purchases in April? $

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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