Blossom Specialties, a retailer of West African food products, has completed the following sales forecast for the coming year:January$36,500July$37,500February37,500August36,500March31,500September32,500April40,000October40,000May35,500November48,000June30,000December52,000Blossom Specialties maintains an ending inventory level of 60 percent of the following month's cost of goods sold. The company's costof goods sold is 30 percent of sales.

1. Sales Forecast and COGS Calculation Firstly, we need to determine the Cost of Goods Sold (COGS)…

Answered: Blossom Specialties, a retailer of West…

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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Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: 20,000 22,000 19,500 18,000 March April May June Wright maintains an ending inventory for each month in the amount of two and one-half times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $7 per unit and are paid for in the month after production. Labor cost is $11 per unit and is paid for in the month incurred. Fixed overhead is $19,000 per month. Dividends of $21,400 are to be paid in May. The firm produced 19,000 units in February. Complete a production schedule and a summary of cash payments for March, April, and May. Remember that production in any one month is equal to sales plus desired ending inventory minus beginning inventory. Note: Input all amounts as positive values except Beginning inventory values under Production Schedule which should be entered with a minus sign. Leave no cells blank…
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