Sales are budgeted at $360,000 for November, $370,000 for December, and $350,000 for January. . Collections are expected to be 40% in the month of sale and 60% in the month following the sale. • The cost of goods sold is 60% of sales. • The company desires an ending merchandise inventory equal to 20% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. • The November beginning balance in the accounts receivable account is $71,000. • The November beginning balance in the accounts payable account is $258,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Schedule of Expected Cash Collections for November and December. Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections November $ $ December 360,000 $ 370,000 144,000 $ 148,000 144,000 $ 148,000

Sales are budgeted at $360,000 for November, $370,000 for December, and $350,000 for January. . Collections are expected to be 40% in the month of sale and 60% in the month following the sale. • The cost of goods sold is 60% of sales. • The company desires an ending merchandise inventory equal to 20% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. • The November beginning balance in the accounts receivable account is $71,000. • The November beginning balance in the accounts payable account is $258,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Schedule of Expected Cash Collections for November and December. Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections November $ $ December 360,000 $ 370,000 144,000 $ 148,000 144,000 $ 148,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $360,000 for November, $380,000 for December, and $370,000 for January. Collections are expected to be 75% in the month of sale and 25% in the month following the sale. The cost of goods sold is 74% of sales. The company desires an ending merchandise inventory equal to 75% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $22,400. Monthly depreciation is $22,200. Ignore taxes. Balance Sheet October 31 Assets Cash $ 23,200 Accounts receivable 84,200 Merchandise inventory 199,800 Property, plant and equipment (net of $606,000 accumulated depreciation) 1,016,000 Total assets $ 1,323,200 Liabilities and Stockholders' Equity Accounts payable $ 197,200 Common stock 610,000 Retained earnings…
ABC Co. produces calculators. Budgeted sales will be: March 12,000 units, April 13,000, May 15,000 and June 19,000. Ending finished goods inventory policy is 10% of the following month's sales. March 1 inventory is projected to be 1,456 units. How many units will be produced in March?
Walnut Company has forecast sales for the next three months as follows: July 4,800 units, August 6,300 units, and September 8,300 units. Walnut's ending finished goods inventory policy is 45% of the next month's sales. July 1 inventory is projected to be 2,100 units. Selling and administrative costs are budgeted to be $24,000 per month plus $6 per unit sold. What are the budgeted selling and administrative expenses for July? Multiple Choice $58,410 $33,210 $52,800 $48,300
Denger
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 15 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $82,000. 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 $ Budgeted cost of goods sold Plus: Desired beginning inventory Inventory needed Less: Desired beginning inventory Required purchases (on account) $…
The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 25% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 14,250 units. The raw materials inventory on hand at the end of each month must equal one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 75,375 cc of solvent H300. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. Budgeted Unit Sales July 49,000 August 54,000 September 64,000 October 44,000 November 34,000 December 24,000 Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October. 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
Zily Co. predicts sales of $185,000 for June. Zily pays a sales manager a monthly salary of $6.600 and a commission of 8% of that month's sales dollars. Prepere a selling expense budget for the month of June. ZILLY CO. Selling Expense Budget For Month Ended June 30 Budgeled sales
What is your answer?
Cypress Inc. has the following budgeted sales for the next quarter.Month: 1 2 3Units: 10,000 11,000 12,000Inventory of finished goods on hand at the beginning of the quarter is 7,000 units. The company desires to maintain ending inventory equal to beginning inventory plus 5,000 units every month.Calculate the total quantity to be produced during the quarter.
Lexi Company budgets unit sales of 1,200,000 in April, 1,290,000 in May, 470,000 in June, and 1,520,000 in July. Beginning inventory on April 1 is 360,000 units, and the company wants to have 30% of next month’s unit sales in inventory at the end of each month. The merchandise cost per unit is $0.50. Prepare a merchandise purchases budget for the months of April, May, and June.
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.
Acme Company sells lumber and general building supplies to building contractors. Data regarding the store's operations follow: Sales are budgeted at $360,000 for November, $330,000 for December, and $310,000 for January. Collections are expected to be 90% in the month of sale and 10% in the month following the sale. The cost of goods sold is 70% of sales. The company desires to have an ending merchandise inventory equal to 70% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $25,700. Monthly depreciation is $18,000. Ignore taxes.