Exercise 7-7A Preparing an inventory purchases budg Lumpkin Company sells lamps and other lighting fixtures. The purchasing department manager pre- pared the following inventory purchases budget. Lumpkin's policy is to maintain an ending inventory balance equal to 10 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $40,000. Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) January $30,000 3,200 33,200 6,000 $27,200 February $32,000 March $35,000 ? Planning for Profie Required Complete the inventory purchases budget by filling in the missing amounts. b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.

Exercise 7-7A Preparing an inventory purchases budg Lumpkin Company sells lamps and other lighting fixtures. The purchasing department manager pre- pared the following inventory purchases budget. Lumpkin's policy is to maintain an ending inventory balance equal to 10 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $40,000. Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) January $30,000 3,200 33,200 6,000 $27,200 February $32,000 March $35,000 ? Planning for Profie Required Complete the inventory purchases budget by filling in the missing amounts. b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.

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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Required information SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below] Shadee Corporation expects to sell 540 sun shades in May and 350 in June. Each shade sells for $161. Shadee's beginning and ending finished goods inventories for May are 70 and 45 shades, respectively. Ending finished goods inventory for June will be 60 shades. E8-8 (Algo) Preparing Cost of Goods Sold Budget [LO 8-31] Each shade requires a total of $60.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 120 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 100 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $14 per hour. Additionally, Shadee's fixed manufacturing overhead is $9,000 per month, and variable manufacturing overhead is $11 per unit produced. Use the information and solutions presented to complete the…
Exercise 14-7A (Algo) Preparing an inventory purchases budget LO 14-3 Rooney Company sells lamps and other lighting fotures. The purchasing department manager prepared the following inventory purchases budget Rooney's policy is to maintain an ending inventory balance equal to 20 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $82,000 Required a. Complete the inventory purchases budget by filling in the missing amounts b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter Complete this question by entering your answers in the tabs below. Red A Rea B and C Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget January February March 550,000 $ 62.000 $ 60.000 Budgeted cost of goods sold
January February Inventory purchases budget in units 12,000 15,000 Each unit costs $5. ABC pays 20% in the month of purchase and 80% in the following the purchase. Accounts payable at December 31 = $25,000 How much cash will be disbursed for inventory purchases in February? Select one: $88,000 $48,000 $27,000 $63,000
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Exercise 14-7A (Algo) Preparing an inventory purchases budget LO 14-3 Perez Company selts lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget Perez's policy is to maintain an ending inventory balance equal to 15 percent of the following month's cost of goods sold. Aprif's budgeted cost of goods sold is $85,000 Required a. Complete the inventory purchases budget by fillng in the missing amounts. b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter Complete this question by entering your answers in the tabs belovw. Reg A Reg and C Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget January February March Butgeted cost of goods sold 61,000 s 67,000 57,000 $ 9,150 Inventory needed…
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