Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager preparedthe inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the followingmonth's cost of goods sold. January's budgeted cost of goods sold is $160,000.October November December150,000 130,000140,00042,000Inventory Needed192,000Less: Beginning Inventory27,000Required purchases (on Account) 165,000Budgeted Cost of Goods SoldPlus: Desired Ending InventoryWhat would be the required purchases (on account) for December?Multiple Choice????$119,000????

Purchase budget: Purchase budget is prepared at the starting of the year to know the purchase…

Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $160,000. Budgeted Cost of Goods Sold Plus: Desired Ending Inventory Inventory Needed Less: Beginning Inventory 27,000 Required purchases (on Account) 165,000 October November December 150,000 130,000 140,000 42,000 192,000 Multiple Choice What would be the required purchases (on account) for December? $119,000 ? ? ? ? ? ? ? ?

Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $160,000. Budgeted Cost of Goods Sold Plus: Desired Ending Inventory Inventory Needed Less: Beginning Inventory 27,000 Required purchases (on Account) 165,000 October November December 150,000 130,000 140,000 42,000 192,000 Multiple Choice What would be the required purchases (on account) for December? $119,000 ? ? ? ? ? ? ? ?

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

Folgerty Enterprises prepared the following sales budget: Month Budgeted Sales March $6,000 April $13,000 May $12,000 June $14,000 The expected gross profit rate is 30% and the inventory at the end of February was $10,000. Desired finished goods inventory levels at the end of the month are 20% of the next month's cost of goods sold. What is the desired beginning finished goods inventory on June 1 (in dollars)? Select one: a. $1,960 b. $840 c. $1,680 d. $9,800 e. $1,860
Mimosa, Inc., a merchandising company, has the following budgeted figures: Jan Feb Mar April Sales $54,900 $63,000 $88,000 $94,000 Cost of goods sold 60% of sales Required ending inventory $20,000 + 30% of next month's sales Inventory on hand on Jan 1 $27,500 Calculate cost of goods sold for the month of February.
In September 2019, the budget committee of Jason Company assembles the following data: 1. 2 Expected Sales 4. October November December Cost of goods sold is expected to be 60% of sales. 3. Desired ending merchandise inventory is 20% of the next month's cost of goods sold. The beginning inventory at October 1 will be the desired amount. $1,800,000 1,700,000 V 1,600,000 Prepare the budgeted income statement for October through gross profit on sales, including a cost of goods sold schedule. V M JASON COMPANY Budgeted Income Statement For the Month Ended October 31, 2019 $ $
Tuscarora, Inc., a merchandising company, has the following budgeted figures: Sales Cost of goods sold Required ending inventory Jan $56,700 60% of sales Feb $64,000 Mar April $88,000 $92,000 $10,000 + 30% of next month's sales $27,500 Inventory on hand on Jan 1 Calculate the budgeted purchases for the month of January. OA. $4,820 OB. $63,220 OC. $35,720 OD. $29,200
Bramble manufactures competition stunt kites. In November, Joseph Moore prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 42,000 32,000 35,000 109,000 Desired ending inventory 6,400 7,000 2,400 2,400 Kites needed 48,400 39,000 37,400 111,400 Less beginning inventory 8,400 6,400 6,400 8,400 Budgeted production 40,000 32,600 31,000 103,000 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 3,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 10% of the next month's sales volume.(a) Prepare a new production budget for the first quarter.…
Metro, Incorporated sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 15% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $78,000. All purchases are made on account with 30% of accounts paid in the month of purchase and the remaining 70% paid in the month following the month of purchase. Sales January $ 44,000 February $ 58,000 Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory March $ 64,000 8,700 52,700 (6,600) Required purchases $ 43,900 Based on this information the amount of accounts payable appearing on the March 31 pro forma balance sheet is Multiple Choice $19,830. $46,270. $66,100. None of the answers is correct.
The Pizza Merchandise Company has budgeted $52,000 in sales for the month of December. The company's cost of goods sold is 25% of sales. If the company has budgeted to purchase $30,000 in merchandise during December, then the budgeted change in inventory levels over the month of December is: Multiple Choice $22,000 decrease. $17.000 increase. $15,250 increase. $9.000 decrease.
Ruiz Company provides the following budgeted sales for the next four months. The company wants to end each month with ending finished goods inventory equal to 30% of next month's budgeted unit sales. Finished goods inventory on April 1 is 153 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units. April 510 Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Budgeted beginning inventory units Total required units Units to produce May 590 RUIZ COMPANY Production Budget April June 540 590 30% July 630 May 540 30% June 630 30%
Champ Incorporated budgets the following sales in units for the coming two months. Each month's ending inventory of finished units should be 60% of the next month's sales. The April 30 finished goods inventory is 114 units. May 190 Budgeted sales units Prepare the production budget for May. CHAMP, INCORPORATED Production Budget Desired ending inventory units Total required units Units to produce June 270 May
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 Complete the inventory purchases budget by filling in the missing amounts. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
Stuart Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Stuart's policy is to maintain an ending inventory balance equal to 15 percent of the following month's cost of sold. April's budgeted cost of goods sold is $80,000. 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 quar 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 Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) January February March $ 57,000 $…
A merchandiser, provides the following information for its December budgeting process: November 30 inventory 1,620 units Budgeted sales for December 4,050 units Desired December 31 inventory 2,835 units Budgeted purchases in December are: