Coronet Company provided the following information related to its inventory sales and purchases for December 2013 and the first quarter of 2014Mar. 2014Dec. 2013Jan. 2014Feb. 2014(Actual)(Budgeted)(Budgeted)(Budgeted)Cost of goodssold$76,000$96,000$46,000$66,000Desired ending inventory levels are 31% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February 2014 would be:Multiple Choice$111,780$94,200.$86,700$75,300

In order to calculate budgeted purchases, we need ending inventory and beginning inventory, these…

Answered: Coronet Company provided the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

None
The Willsey Merchandise Company has budgeted $45,000 in sales for the month of December. The company's cost of goods sold is 30% of sales. If the company has budgeted to purchase $22,000 in merchandise during December, then the budgeted change in inventory levels over the month of December is? A. $8,500 Increase B. 9.500 Decrease C. 16,350 Increase D. 23.000 Decrease
8
Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April 210 May 140 June 150 July 200 August 160 Each candle costs $ 10. The ending inventory policy is 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $2,460. Required: a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign.a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign. b. Prepare a cash payments budget for the quarter ending June 30.
Summit Company has budgeted purchases of merchandise inventory of $457,500 in January and $533,750 in February. Assume Summit pays for inventory purchases 40% in the month of the purchase and 60% in the month after purchase. The Accounts Payable balance on December 31 is $97,350. Prepare a schedule of cash payments for purchases for January and February. Cash Payments January February Total merchandise inventory purchases Cash Payments Merchandise Inventory: Dec.—Dec. 31 Accounts Payable, paid in Jan. Jan.—Jan. merchandise inventory purchases paid in Jan. Jan.—Jan. merchandise inventory purchases paid in Feb. Feb.—Feb. merchandise inventory purchases paid in Feb. Total payments for merchandise inventory
Hancock Ltd which carries no month end inventory, has produced the following budgeted Statements of Profit or Loss. July August September October Sales 10,000 12,000 8,000 9,000 Purchases 4,000 4,800 3,200 3,600 Gross profit 6,000 7,200 4,800 5,400 Operating costs 4,000 4,000 4,000 4,000 Net profit 2,000 3,200 800 1,400 If the cash balance on 1st September is £3,000 and assuming that all customers take one month’s credit, that Hancock Ltd takes two months credit on purchases and that operating costs are paid immediately, what will be the expected cash balance at the end of October? £14,200 £6,200 £7,200 £8,200
Metro, Incorporated sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 15% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $78,000. All purchases are made on account with 30% of accounts paid in the month of purchase and the remaining 70% paid in the month following the month of purchase. Sales January $ 44,000 February $ 58,000 Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory March $ 64,000 8,700 52,700 (6,600) Required purchases $ 43,900 Based on this information the amount of accounts payable appearing on the March 31 pro forma balance sheet is Multiple Choice $19,830. $46,270. $66,100. None of the answers is correct.
Schedules of Expected Cash Collections and Disbursements; Budgeted Income Statement and Budgeted Balance Sheet. Crow Enterprises is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below: Crow Enterprises Balance Sheet June 30 Assets $ 80,000 135,000 41,250 Plant and equipment, net of depreciation_211,000 $ 457,250 Cash Accounts receivable Inventory Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings $ 72,000 345,000 50,250 Total liabilities and stockholders' equity $ 467,250 Crow's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $220,000, $240,000, $230,000, and $250,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the…
3
Swifty Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels are planned for the fiscal year of July 1, 2016 to June 30, 2017: June 30, 2017 June 30, 2016 Raw 3000 kilos 1000 kilos Materials Three kilos of raw materials are needed to produce each unit of finished product. If Swifty Corporation plans to produce 480000 units during the 2016-2017 fiscal year, how many kilos of materials will the company need to purchase for its production during the year? O 1442000 O 1446000 O 1439000 O 1440000
A merchandiser, provides the following information for its December budgeting process: November 30 inventory 1,620 units Budgeted sales for December 4,050 units Desired December 31 inventory 2,835 units Budgeted purchases in December are:

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS