Sullivan, 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.Data tableCash sales, 20%Credit sales, 80%Total sales$$March 31Quarter EndedJune 30 September 3037,000 $27,000 $108,000135,000 $Print148,000185,000 $Done32,000 $128,000160,000 $Nine-MonthTotal-96,000384,000480,000More infoIn the past, cost of goods sold has been 40% of total sales. The director ofmarketing and the financial vice president agree that each quarter's endinginventory should not be below $20,000 plus 10% of cost of goods sold for thefollowing quarter. The marketing director expects sales of $235,000 during thefourth quarter. The January 1 inventory was $32,000.PrintDone

The first costs incurred to manufacture or produce the goods are called cost of goods sold. The…

Sullivan, 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. Data table Cash sales, 20% Credit sales, 80% Total sales $ $ March 31 Quarter Ended June 30 September 30 37,000 $ 148,000 185,000 $ 27,000 $ 108,000 135,000 $ Print Done 32,000 $ 128,000 160,000 $ Nine-Month Total 96,000 384,000 480,000 More info 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 $20,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $235,000 during the fourth quarter. The January 1 inventory was $32,000 Print Done

Sullivan, 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. Data table Cash sales, 20% Credit sales, 80% Total sales $ $ March 31 Quarter Ended June 30 September 30 37,000 $ 148,000 185,000 $ 27,000 $ 108,000 135,000 $ Print Done 32,000 $ 128,000 160,000 $ Nine-Month Total 96,000 384,000 480,000 More info 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 $20,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $235,000 during the fourth quarter. The January 1 inventory was $32,000 Print Done

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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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

Sullivan, 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.
Data table
Cash sales, 20%
Credit sales, 80%
Total sales
$
$
March 31
Quarter Ended
June 30 September 30
37,000 $
27,000 $
108,000
135,000 $
Print
148,000
185,000 $
Done
32,000 $
128,000
160,000 $
Nine-Month
Total
-
96,000
384,000
480,000
More info
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 $20,000 plus 10% of cost of goods sold for the
following quarter. The marketing director expects sales of $235,000 during the
fourth quarter. The January 1 inventory was $32,000.
Print
Done

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