None The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $13,400. Assumethat all purchases are made on account. Prepare an inventory purchases budget.Inventory Purchases BudgetOctoberNovemberDecemberBudgeted cost of goods sold "Plus Desired ending inventoryInventory needed13,4000of13,4000Less Beginning inventoryRequired purchases (on account)$0S0 $13,400

Answer image:Workings:Jordan CompanyPro Forma Income StatementFor the quarter ended December 31,…

Answered: The cost of goods sold is 60 percent of…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...

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The following are the estimated monthly sales and desired ending finished goods inventories for Blushing Company for the fourth quarter ending December 31, as well as the month immediately before and after: Sales Ending Inventory September 30,000 units 8,000 units October40,000 units 20% of next month's sales November50,000 units 20% of next month's sales December60,000 units 20% of next month's sales January20,000 units 10% of next month's sales The unit selling price is $25. Materials cost per unit is $5. Direct labor required per unit is 0.1 hour. The direct labor rate is $20. The multiperiod direct labor cost budget for the fourth quarter should show the total direct labor cost for the quarter to be a.$355,000 b.$365,000 c.$3,650,000 d.$375,000
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