Homework Help is Here – Start Your Trial Now!
Business
Accounting
Problem 14-18A (Algo) Preparing an inventory purchases budget and schedule of cash payments LO 14-3 Finch, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July: Budgeted cost of goods sold April $ 63,000 May June July $ 73,000 $ 83,000 $ 89,000 Finch had a beginning inventory balance of $2,800 on April 1 and a beginning balance in accounts payable of $13,900. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Finch 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 Finch 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 Finch 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 May June Budgeted cost of goods sold $ 63,000 $ 73,000 $ 83,000 Inventory needed 63,000 73,000 83,000 Required purchases (on account) $ 63,000 $ 73,000 $ 83,000 Required A Required B >

Problem 14-18A (Algo) Preparing an inventory purchases budget and schedule of cash payments LO 14-3 Finch, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July: Budgeted cost of goods sold April $ 63,000 May June July $ 73,000 $ 83,000 $ 89,000 Finch had a beginning inventory balance of $2,800 on April 1 and a beginning balance in accounts payable of $13,900. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Finch 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 Finch 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 Finch 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 May June Budgeted cost of goods sold $ 63,000 $ 73,000 $ 83,000 Inventory needed 63,000 73,000 83,000 Required purchases (on account) $ 63,000 $ 73,000 $ 83,000 Required A Required B >

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 4E: Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended...
See similar textbooks
icon
Related questions
Question
Don't use ai to answer I will report you answer
Problem 14-18A (Algo) Preparing an inventory purchases budget and schedule of cash payments LO 14-3 Finch, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July: Budgeted cost of goods sold April $ 63,000 May June July $ 73,000 $ 83,000 $ 89,000 Finch had a beginning inventory balance of $2,800 on April 1 and a beginning balance in accounts payable of $13,900. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Finch 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 Finch 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 Finch 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 May June Budgeted cost of goods sold $ 63,000 $ 73,000 $ 83,000 Inventory needed 63,000 73,000 83,000 Required purchases (on account) $ 63,000 $ 73,000 $ 83,000 Required A Required B >
Transcribed Image Text:Problem 14-18A (Algo) Preparing an inventory purchases budget and schedule of cash payments LO 14-3 Finch, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July: Budgeted cost of goods sold April $ 63,000 May June July $ 73,000 $ 83,000 $ 89,000 Finch had a beginning inventory balance of $2,800 on April 1 and a beginning balance in accounts payable of $13,900. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Finch 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 Finch 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 Finch 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 May June Budgeted cost of goods sold $ 63,000 $ 73,000 $ 83,000 Inventory needed 63,000 73,000 83,000 Required purchases (on account) $ 63,000 $ 73,000 $ 83,000 Required A Required B >
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS