Cash sales, 30% Credit sales, 70% Total sales > Show Transcribed Text $ CA $ March 31 Quarter Ended June 30 September 30 52,500 $ 37,500 $ 87,500 125,000 $ C 122,500 175,000 $ C 45,000 $ 105,000 150,000 $ Nine-Month Total 135,000 315.000 450,000 In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarter's ending inventory should not be below $35,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $225,000 during the fourth quarter. The January 1 inventory was $15,000.
Cash sales, 30% Credit sales, 70% Total sales > Show Transcribed Text $ CA $ March 31 Quarter Ended June 30 September 30 52,500 $ 37,500 $ 87,500 125,000 $ C 122,500 175,000 $ C 45,000 $ 105,000 150,000 $ Nine-Month Total 135,000 315.000 450,000 In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarter's ending inventory should not be below $35,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $225,000 during the fourth quarter. The January 1 inventory was $15,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jezaret, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2024, and additional information follow:
(Click the icon to view the budget.)
(Click the icon to view additional information.)
Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period.
Jezaret, Inc.
Inventory, Purchases, and Cost of Goods Sold Budget
Nine Months Ended September 30, 2024
Cost of goods sold
Plus: Desired ending merchandise inventory
Total merchandise inventory required
Less: Beginning merchandise inventory
Budgeted Purchases
Quarter Ended
March 31
C...
Transcribed Image Text:Cash sales, 30%
Credit sales, 70%
Total sales
> Show Transcribed Text
$
$
March 31
Quarter Ended
June 30 September 30
52,500 $
37,500 $
87,500
125,000 $
c
122,500
175,000 $
45,000 $
105,000
150,000 $
Nine-Month
Total
135,000
315.000
450,000
In the past, cost of goods sold has been 40% of total sales. The director of
marketing and the financial vice president agree that each quarter's ending
inventory should not be below $35,000 plus 10% of cost of goods sold for the
following quarter. The marketing director expects sales of $225,000 during the
fourth quarter. The January 1 inventory was $15,000.
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