Rooney Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Rooney'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 $77,000. 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. Req A Req B and C Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget January February March Budgeted cost of goods sold $ 59,000 $ 63,000 $ 69,000 Plus: Desired ending inventory 6,300 Inventory needed 65,300 Less: Beginning inventory 5,900 Required purchases (on account) $ 59,400 < Req A Req B and C >
Rooney Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Rooney'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 $77,000. 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. Req A Req B and C Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget January February March Budgeted cost of goods sold $ 59,000 $ 63,000 $ 69,000 Plus: Desired ending inventory 6,300 Inventory needed 65,300 Less: Beginning inventory 5,900 Required purchases (on account) $ 59,400 < Req A Req B and C >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Rooney Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory
purchases budget. Rooney'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 $77,000.
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.
Req A
Req B and C
Complete the inventory purchases budget by filling in the missing amounts.
Inventory Purchases Budget
January
February
March
Budgeted cost of goods sold
$
59,000 $ 63,000 $ 69,000
Plus: Desired ending inventory
6,300
Inventory needed
65,300
Less: Beginning inventory
5,900
Required purchases (on account)
$
59,400
< Req A
Req B and C >
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