Complete this question by entering your answers in the tabs below.Reg AReg B and CComplete the inventory purchases budget by filling in the missing amounts.Inventory Purchases BudgetJanuaryFebruaryMarch$68,000Budgeted cost of goods sold$ 50.000 $ 62,00012,400Inventory needed70,40011,600Required purchases (on account)S 58.800Complete this question by entering your answers in the tebs below.Reg ARegand cDetermine the amount of cast of goods sold the company will report on its first quarter pro forma incorse statement.Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the Stquarterb. Cost of goods soldEnding inventoryReq AReq Band C > Exercise 14-7A (Algo) Preparing an inventory purchases budget LO 14-3Rooney Company sells lamps and other lighting fotures. The purchasing department manager prepared the following inventorypurchases budget Rooney's policy is to maintain an ending inventory balance equal to 20 percent of the following month's cost ofgoods sold. April's budgeted cost of goods sold is $82,000Requireda. Complete the inventory purchases budget by filling in the missing amountsb. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statementc. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarterComplete this question by entering your answers in the tabs below.Red ARea B and CComplete the inventory purchases budget by filling in the missing amounts.Inventory Purchases BudgetJanuaryFebruary March550,000 $ 62.000 $ 60.000Budgeted cost of goods sold

Inventory purchase budget: It is a budget prepared by the company for knowing the inventory needs in…

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 20 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $82,000

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 20 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $82,000

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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Summit Company has budgeted purchases of merchandise inventory of $457,500 in January and $533,750 in February. Assume Summit pays for inventory purchases 40% in the month of the purchase and 60% in the month after purchase. The Accounts Payable balance on December 31 is $97,350. Prepare a schedule of cash payments for purchases for January and February. Cash Payments January February Total merchandise inventory purchases Cash Payments Merchandise Inventory: Dec.—Dec. 31 Accounts Payable, paid in Jan. Jan.—Jan. merchandise inventory purchases paid in Jan. Jan.—Jan. merchandise inventory purchases paid in Feb. Feb.—Feb. merchandise inventory purchases paid in Feb. Total payments for merchandise inventory
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