Julies' Merchandise has budgeted sales as follows for the third quarter of the year: July $44, 000 August $75,000 September $64,000 Cost of goods sold in the company is equal to 70% of sales. The company wants to maintain a monthly ending inventory equal to 105% of the cost of goods sold for the following month. The inventory on June 30 is $24,000. The company is now preparing a merchandise purchase budget for July, August, and September. Do not enter dollar signs or commas in the input boxes. Do not use the negative sign. Round all answers to the nearest whole number. a) What is the total merchandise needs for the month of July? Merchandise to be sold $Answer 30800 Desired ending inventory $Answer Total merchandise needs for July $Answer b) What is budgeted purchases in the month of August? Merchandise to be sold $Answer Desired Ending Inventory $Answer Beginning Inventory $Answer Merchandise to be purchased $Answer

Julies' Merchandise has budgeted sales as follows for the third quarter of the year: July $44, 000 August $75,000 September $64,000 Cost of goods sold in the company is equal to 70% of sales. The company wants to maintain a monthly ending inventory equal to 105% of the cost of goods sold for the following month. The inventory on June 30 is $24,000. The company is now preparing a merchandise purchase budget for July, August, and September. Do not enter dollar signs or commas in the input boxes. Do not use the negative sign. Round all answers to the nearest whole number. a) What is the total merchandise needs for the month of July? Merchandise to be sold $Answer 30800 Desired ending inventory $Answer Total merchandise needs for July $Answer b) What is budgeted purchases in the month of August? Merchandise to be sold $Answer Desired Ending Inventory $Answer Beginning Inventory $Answer Merchandise to be purchased $Answer

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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