Scannell, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2024, and additional information follow: (Click the icon to view the budget.) i (Click the icon to view additional information.) Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period. Plus: Less: More info Scannell, Inc. Inventory, Purchases, and Cost of Goods Sold Budget Nine Months Ended September 30, 2024 Quarter Ended March 31 In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarter's ending inventory should not be below $15,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $200,000 during the fourth quarter. The January 1 inventory was $19,000. Print Done - X Data table Cash sales, 30% Credit sales, 70% Total sales $ $ Quarter Ended June 30 September 30 45,000 $ 105,000 150,000 $ March 31 30,000 $ 70,000 100,000 $ Print [0 Done 37,500 $ 87,500 125,000 $ Nine-Month Total - X 112,500 262,500 375,000

Scannell, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2024, and additional information follow: (Click the icon to view the budget.) i (Click the icon to view additional information.) Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period. Plus: Less: More info Scannell, Inc. Inventory, Purchases, and Cost of Goods Sold Budget Nine Months Ended September 30, 2024 Quarter Ended March 31 In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarter's ending inventory should not be below $15,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $200,000 during the fourth quarter. The January 1 inventory was $19,000. Print Done - X Data table Cash sales, 30% Credit sales, 70% Total sales $ $ Quarter Ended June 30 September 30 45,000 $ 105,000 150,000 $ March 31 30,000 $ 70,000 100,000 $ Print [0 Done 37,500 $ 87,500 125,000 $ Nine-Month Total - X 112,500 262,500 375,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Scannell, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2024, and additional information follow:
(Click the icon to view the budget.)
(Click the icon to view additional information.)
Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period.
Plus:
Less:
More info
Scannell, Inc.
Inventory, Purchases, and Cost of Goods Sold Budget
Nine Months Ended September 30, 2024
Quarter Ended
March 31
In the past, cost of goods sold has been 40% of total sales. The director of
marketing and the financial vice president agree that each quarter's ending
inventory should not be below $15,000 plus 10% of cost of goods sold for the
following quarter. The marketing director expects sales of $200,000 during the
fourth quarter. The January 1 inv ory was $19,000.
Print
Done
X
Data table
Cash sales, 30%
Credit sales, 70%
Total sales
$
$
Quarter Ended
June 30
45,000 $
105,000
150,000 $
March 31
30,000 $
70,000
100,000 $
Print
September 30
37,500 $
87,500
125,000 $
Done
Nine-Month
Total
-
112,500
262,500
375,000
X

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