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The executive management team of Fett Company is discussing their budget for the next year. They decided to break into two smaller teams to provide sales estimates for the larger group to consider. The estimates provided for consideration are listed below. First Second Third Fourth Estimate Quarter $383,000 516,000 Quarter $307,000 456,000 Quarter $289,000 420,000 Quarter $472,000 641,000 Team 1 Team 2 Fett's past experience indicates that cost of goods sold is about 55 percent of sales revenue. The company tries to maintain 15 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $38,000. Next year's ending inventory is budgeted to be $39,000. Required a. Prepare an inventory purchases budget using the Team 1 estimate. b. Prepare an inventory purchases budget using the Team 2 estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an inventory purchases budget using the Team 1 estimate. (Round your final answers to nearest whole dollar amount.) Second Fourth First Quarter Third Quarter Quarter Quarter 383,000 S 307,000 $ 289,000 $ 472,000 Sales Total inventory needed Required purchases < Prev 4 of 10 Next >

The executive management team of Fett Company is discussing their budget for the next year. They decided to break into two smaller teams to provide sales estimates for the larger group to consider. The estimates provided for consideration are listed below. First Second Third Fourth Estimate Quarter $383,000 516,000 Quarter $307,000 456,000 Quarter $289,000 420,000 Quarter $472,000 641,000 Team 1 Team 2 Fett's past experience indicates that cost of goods sold is about 55 percent of sales revenue. The company tries to maintain 15 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $38,000. Next year's ending inventory is budgeted to be $39,000. Required a. Prepare an inventory purchases budget using the Team 1 estimate. b. Prepare an inventory purchases budget using the Team 2 estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an inventory purchases budget using the Team 1 estimate. (Round your final answers to nearest whole dollar amount.) Second Fourth First Quarter Third Quarter Quarter Quarter 383,000 S 307,000 $ 289,000 $ 472,000 Sales Total inventory needed Required purchases < Prev 4 of 10 Next >

FINANCIAL ACCOUNTING
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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The executive management team of Fett Company is discussing their budget for the next year. They decided to break into two smaller teams to provide sales estimates for the larger group to consider. The estimates provided for consideration are listed below. First Second Third Fourth Estimate Quarter $383,000 516,000 Quarter $307,000 456,000 Quarter $289,000 420,000 Quarter $472,000 641,000 Team 1 Team 2 Fett's past experience indicates that cost of goods sold is about 55 percent of sales revenue. The company tries to maintain 15 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $38,000. Next year's ending inventory is budgeted to be $39,000. Required a. Prepare an inventory purchases budget using the Team 1 estimate. b. Prepare an inventory purchases budget using the Team 2 estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an inventory purchases budget using the Team 1 estimate. (Round your final answers to nearest whole dollar amount.) Second Quarter Fourth Quarter First Quarter Third Quarter 383,000 2$ 307,000 $ 289,000 $ 472,000 Sales Total inventory needed Required purchases 0 $ < Prey 4 of 10 Next >
Transcribed Image Text:The executive management team of Fett Company is discussing their budget for the next year. They decided to break into two smaller teams to provide sales estimates for the larger group to consider. The estimates provided for consideration are listed below. First Second Third Fourth Estimate Quarter $383,000 516,000 Quarter $307,000 456,000 Quarter $289,000 420,000 Quarter $472,000 641,000 Team 1 Team 2 Fett's past experience indicates that cost of goods sold is about 55 percent of sales revenue. The company tries to maintain 15 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $38,000. Next year's ending inventory is budgeted to be $39,000. Required a. Prepare an inventory purchases budget using the Team 1 estimate. b. Prepare an inventory purchases budget using the Team 2 estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an inventory purchases budget using the Team 1 estimate. (Round your final answers to nearest whole dollar amount.) Second Quarter Fourth Quarter First Quarter Third Quarter 383,000 2$ 307,000 $ 289,000 $ 472,000 Sales Total inventory needed Required purchases 0 $ < Prey 4 of 10 Next >
Fett's past experience indicates that cost of goods sold is about 55 percent of sales revenue. The company tries to maintain 15 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $38,000. Next year's ending inventory is budgeted to be $39,00o. Required a. Prepare an inventory purchases budget using the Team 1 estimate. b. Prepare an inventory purchases budget using the Team 2 estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an inventory purchases budget using the Team 2 estimate. (Round your final answers to nearest whole dollar amount.) Fourth Quarter Second First Quarter Third Quarter Quarter 24 516,000 $ 456,000 $ 420,000 $ 641,000 Sales Total inventory needed 2$ Required purchases < Required A
Transcribed Image Text:Fett's past experience indicates that cost of goods sold is about 55 percent of sales revenue. The company tries to maintain 15 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $38,000. Next year's ending inventory is budgeted to be $39,00o. Required a. Prepare an inventory purchases budget using the Team 1 estimate. b. Prepare an inventory purchases budget using the Team 2 estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an inventory purchases budget using the Team 2 estimate. (Round your final answers to nearest whole dollar amount.) Fourth Quarter Second First Quarter Third Quarter Quarter 24 516,000 $ 456,000 $ 420,000 $ 641,000 Sales Total inventory needed 2$ Required purchases < Required A
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