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Blanches Company, which sells Kombucha, had $173,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $25,000, and the desired ending inventory balance for July is $6,900. The company pays cash to settle 50 percent of its purchases on account during the month of purchase and pays the remaining 50 percent in the month following the purchase. The accounts payable balance as of June 30 was $22,800. Required: a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July Complete this question by entering your answers in the tabs below.

Blanches Company, which sells Kombucha, had $173,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $25,000, and the desired ending inventory balance for July is $6,900. The company pays cash to settle 50 percent of its purchases on account during the month of purchase and pays the remaining 50 percent in the month following the purchase. The accounts payable balance as of June 30 was $22,800. Required: a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
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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Blanches Company, which sells Kombucha, had $173,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $25,000, and the desired ending inventory balance for July is $6,900. The company pays cash to settle 50 percent of its purchases on account during the month of purchase and pays the remaining 50 percent in the month following the purchase. The accounts payable balance as of June 30 was $22,800. Required: a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July Complete this question by entering your answers in the tabs below. Required A Required B Determine the amount of purchases budgeted for July. Ending inventory balance Budgeted cost of goods sold Total inventory needed Budgeted purchases S 0 Required B >
Transcribed Image Text:Blanches Company, which sells Kombucha, had $173,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $25,000, and the desired ending inventory balance for July is $6,900. The company pays cash to settle 50 percent of its purchases on account during the month of purchase and pays the remaining 50 percent in the month following the purchase. The accounts payable balance as of June 30 was $22,800. Required: a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July Complete this question by entering your answers in the tabs below. Required A Required B Determine the amount of purchases budgeted for July. Ending inventory balance Budgeted cost of goods sold Total inventory needed Budgeted purchases S 0 Required B >
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