PROBLEM 7-C PURCHASES BUDGETThe following, are budgeted data for the Emerald Company, a merchandising company:Budgeted Sales (at retall): January - P300,000; February - P340,000; March - P400,000; April -P350,000. Cost of goods sold as a percentage of sales is 60%. The desired ending inventory is75% of pext month's sales.Required:1. Assuming that che company had Ioventory on hand of P70,000 (ar cost) ọn January 1, howmuch must be the purchases for January (at cost)?2. How much is the destred ending Inventory (at cost) for the month of February?3. Assume that all purchases are paid for In the month following the month of purchase. Howmuch cash disbursernents for purchases would appear in the April cash budget?

Cost of goods sold:- Cost of goods sold includes all the direct costs that are related to production…

PROBLEM 7-C_PURCHASES BUDGET The following, are budgeted data for the Emeratd Company, a merchandising company: Budgeted Sales (ag retall): January - P300,000; February - P340,000; Marah - P400,000; April - P350,000. Cost of goods sold as a percentage of sales is 60%. The desired-ending inventory is 75% of pext month's sales. Required: 1. Assuming thiat the company had Inventory on hand of P70,000 (ar cost), on January 1, how much must be the purchases for January (at cost)? 2. How much is the destred ending inventory (at cost) for the month of Eobruary? 3. Assume that allourchases are paid for In the month following the month of purchase. How much cash disbursereents fo Purchases would appear in the April .cash budget?

PROBLEM 7-C_PURCHASES BUDGET The following, are budgeted data for the Emeratd Company, a merchandising company: Budgeted Sales (ag retall): January - P300,000; February - P340,000; Marah - P400,000; April - P350,000. Cost of goods sold as a percentage of sales is 60%. The desired-ending inventory is 75% of pext month's sales. Required: 1. Assuming thiat the company had Inventory on hand of P70,000 (ar cost), on January 1, how much must be the purchases for January (at cost)? 2. How much is the destred ending inventory (at cost) for the month of Eobruary? 3. Assume that allourchases are paid for In the month following the month of purchase. How much cash disbursereents fo Purchases would appear in the April .cash budget?

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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