Jordan, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Required April $ 65,000 Budgeted cost of goods sold Jordan had a beginning inventory balance of $4,200 on April 1 and a beginning balance in accounts payable of $14,300. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Jordan makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the month following purchase. a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Jordan will report on the end-of-quarter pro forma balance sheet. Inventory needed May $ 75,000 c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Jordan will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April Budgeted cost of goods sold Required purchases (on account) S June $ 85,000 May 65,000 $ 75,000 65,000 < Required A 75,000 June $ $ 85,000 July $ 91,000 85,000 $ 65,000 $ 75,000 $85.000 Required B >
Jordan, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Required April $ 65,000 Budgeted cost of goods sold Jordan had a beginning inventory balance of $4,200 on April 1 and a beginning balance in accounts payable of $14,300. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Jordan makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the month following purchase. a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Jordan will report on the end-of-quarter pro forma balance sheet. Inventory needed May $ 75,000 c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Jordan will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April Budgeted cost of goods sold Required purchases (on account) S June $ 85,000 May 65,000 $ 75,000 65,000 < Required A 75,000 June $ $ 85,000 July $ 91,000 85,000 $ 65,000 $ 75,000 $85.000 Required B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Jordan, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April,
May, June, and July.
Required A Required B Required C Required D
April
$ 65,000
Budgeted cost of goods sold
Jordan had a beginning inventory balance of $4,200 on April 1 and a beginning balance in accounts payable of $14,300. The company
desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Jordan makes all
purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in
the month following purchase.
Required
a. Prepare an inventory purchases budget for April, May, and June.
b. Determine the amount of ending inventory Jordan will report on the end-of-quarter pro forma balance sheet.
c. Prepare a schedule of cash payments for inventory for April, May, and June.
d. Determine the balance in accounts payable Jordan will report on the end-of-quarter pro forma balance sheet.
Complete this question by entering your answers in the tabs below.
Inventory Purchases Budget
Budgeted cost of goods sold
Prepare an inventory purchases budget for April, May, and June.
April
Inventory needed
Required purchases (on account)
$
May
$ 75,000
65,000 $
65,000
June
$ 85,000
May
June
75,000 $ 85,000
75,000
85,000
$ 65,000 $ 75,000 $ 85,000
< Required A
July
$ 91,000
Required B >
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