Merchandise purchase budget for July, August, September, October.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 7, Problem 29E

(1)

To determine

To prepare: Merchandise purchase budget for July, August, September, October.

(1)

Expert Solution

Explanation of Solution

Merchandise Purchase Budget
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Next month’s cost of goods sold (Working note 1)	245,000	203,000	224,000	192,500	185,500
Ending inventory (Working note 2)	49,000	40,600	44,800	38,500	37,100
Add: Cost of goods sold		245,000	203,000	224,000	192,500
Required inventory		285,600	247,800	262,500	229,600
Less: Opening inventory		49,000	40,600	44,800	38,500
Inventory to be purchased		236,600	207,200	217,700	191,100
Table (1)

Working note:

Formula to calculate next month’s cost of goods sold,

Cost of goods sold=Budgeted sales×70%

Next month’s cost of goods sold
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Cost of goods sold ( Sales×70% )	245,000	203,000	224,000	192,500	185,500
Table (2)

Working note:

Ending inventory
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Next month’s cost of goods sold	245,000	203,000	224,000	192,500	185,500
Ending inventory ( Next month's cost of goods sold×20% )	49,000	40,600	44,800	38,500	37,100
Table (3)

(2)

To determine

To prepare: Budgeted cash payments on account payables.

(2)

Expert Solution

Explanation of Solution

Budgeted Cash Payments on Account payables
Particulars	September Amount ($)	October Amount ($)
Payment for July purchases	35,490
Payment for August purchases	124,320	31,080
Payment for September purchases	54,425	130,620
Payment for October purchases		47,775
Total	214,225	209,475
Table (4)

(3)

To determine

To prepare: Budgeted accounts payable for September and October.

(3)

Expert Solution

Explanation of Solution

Budgeted cash payments on account payables
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)
Beginning accounts payable	0	177,450	190,890	194,355
Add: Budgeted purchases	236,600	207,200	217,700	191,100
Amount payable after purchases [ A ]	236,600	384,650	408,590	385,455
Cash disbursement
Payment for July purchases	59,1501	41,960	35,490
Payment for August purchases		51,800	124,380	31,080
Payment for September purchases			54,425	130,620
Payment for October purchases				47,725
Total Cash payments [ B ]	59,150	193,760	214,235	209,475
Ending accounts payable [ A−B ]	177,450	190,890	194,355	175,980
Table (5)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Noble Electronics reported annual sales revenue of $3,150,000. During the year, accounts receivable increased from a $65,000 beginning balance to a $85,000 ending balance. Accounts payable decreased from a $70,000 beginning balance to a $50,000 ending balance. How much is cash received from customers for the year? A. $3,130,000 B. $3,135,000 C. $3,165,000 D. $3,100,000

At the end of Everest Manufacturing Ltd's first year of operations... Please answer the general accounting question

Accurate answer

Answer 2

Question

Chapter 7, Problem 29E

(1)

To determine

To prepare: Merchandise purchase budget for July, August, September, October.

(1)

Expert Solution

Explanation of Solution

Merchandise Purchase Budget
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Next month’s cost of goods sold (Working note 1)	245,000	203,000	224,000	192,500	185,500
Ending inventory (Working note 2)	49,000	40,600	44,800	38,500	37,100
Add: Cost of goods sold		245,000	203,000	224,000	192,500
Required inventory		285,600	247,800	262,500	229,600
Less: Opening inventory		49,000	40,600	44,800	38,500
Inventory to be purchased		236,600	207,200	217,700	191,100
Table (1)

Working note:

Formula to calculate next month’s cost of goods sold,

Cost of goods sold=Budgeted sales×70%

Next month’s cost of goods sold
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Cost of goods sold ( Sales×70% )	245,000	203,000	224,000	192,500	185,500
Table (2)

Working note:

Ending inventory
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Next month’s cost of goods sold	245,000	203,000	224,000	192,500	185,500
Ending inventory ( Next month's cost of goods sold×20% )	49,000	40,600	44,800	38,500	37,100
Table (3)

(2)

To determine

To prepare: Budgeted cash payments on account payables.

(2)

Expert Solution

Explanation of Solution

Budgeted Cash Payments on Account payables
Particulars	September Amount ($)	October Amount ($)
Payment for July purchases	35,490
Payment for August purchases	124,320	31,080
Payment for September purchases	54,425	130,620
Payment for October purchases		47,775
Total	214,225	209,475
Table (4)

(3)

To determine

To prepare: Budgeted accounts payable for September and October.

(3)

Expert Solution

Explanation of Solution

Budgeted cash payments on account payables
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)
Beginning accounts payable	0	177,450	190,890	194,355
Add: Budgeted purchases	236,600	207,200	217,700	191,100
Amount payable after purchases [ A ]	236,600	384,650	408,590	385,455
Cash disbursement
Payment for July purchases	59,1501	41,960	35,490
Payment for August purchases		51,800	124,380	31,080
Payment for September purchases			54,425	130,620
Payment for October purchases				47,725
Total Cash payments [ B ]	59,150	193,760	214,235	209,475
Ending accounts payable [ A−B ]	177,450	190,890	194,355	175,980
Table (5)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 7, Problem 29E

(1)

To determine

To prepare: Merchandise purchase budget for July, August, September, October.

(1)

Expert Solution

Explanation of Solution

Merchandise Purchase Budget
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Next month’s cost of goods sold (Working note 1)	245,000	203,000	224,000	192,500	185,500
Ending inventory (Working note 2)	49,000	40,600	44,800	38,500	37,100
Add: Cost of goods sold		245,000	203,000	224,000	192,500
Required inventory		285,600	247,800	262,500	229,600
Less: Opening inventory		49,000	40,600	44,800	38,500
Inventory to be purchased		236,600	207,200	217,700	191,100
Table (1)

Working note:

Formula to calculate next month’s cost of goods sold,

Cost of goods sold=Budgeted sales×70%

Next month’s cost of goods sold
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Cost of goods sold ( Sales×70% )	245,000	203,000	224,000	192,500	185,500
Table (2)

Working note:

Ending inventory
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Next month’s cost of goods sold	245,000	203,000	224,000	192,500	185,500
Ending inventory ( Next month's cost of goods sold×20% )	49,000	40,600	44,800	38,500	37,100
Table (3)

(2)

To determine

To prepare: Budgeted cash payments on account payables.

(2)

Expert Solution

Explanation of Solution

Budgeted Cash Payments on Account payables
Particulars	September Amount ($)	October Amount ($)
Payment for July purchases	35,490
Payment for August purchases	124,320	31,080
Payment for September purchases	54,425	130,620
Payment for October purchases		47,775
Total	214,225	209,475
Table (4)

(3)

To determine

To prepare: Budgeted accounts payable for September and October.

(3)

Expert Solution

Explanation of Solution

Budgeted cash payments on account payables
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)
Beginning accounts payable	0	177,450	190,890	194,355
Add: Budgeted purchases	236,600	207,200	217,700	191,100
Amount payable after purchases [ A ]	236,600	384,650	408,590	385,455
Cash disbursement
Payment for July purchases	59,1501	41,960	35,490
Payment for August purchases		51,800	124,380	31,080
Payment for September purchases			54,425	130,620
Payment for October purchases				47,725
Total Cash payments [ B ]	59,150	193,760	214,235	209,475
Ending accounts payable [ A−B ]	177,450	190,890	194,355	175,980
Table (5)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 29E

(1)

To determine

To prepare: Merchandise purchase budget for July, August, September, October.

(1)

Expert Solution

Explanation of Solution

Merchandise Purchase Budget
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Next month’s cost of goods sold (Working note 1)	245,000	203,000	224,000	192,500	185,500
Ending inventory (Working note 2)	49,000	40,600	44,800	38,500	37,100
Add: Cost of goods sold		245,000	203,000	224,000	192,500
Required inventory		285,600	247,800	262,500	229,600
Less: Opening inventory		49,000	40,600	44,800	38,500
Inventory to be purchased		236,600	207,200	217,700	191,100
Table (1)

Working note:

Formula to calculate next month’s cost of goods sold,

Cost of goods sold=Budgeted sales×70%

Next month’s cost of goods sold
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Cost of goods sold ( Sales×70% )	245,000	203,000	224,000	192,500	185,500
Table (2)

Working note:

Ending inventory
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Next month’s cost of goods sold	245,000	203,000	224,000	192,500	185,500
Ending inventory ( Next month's cost of goods sold×20% )	49,000	40,600	44,800	38,500	37,100
Table (3)

(2)

To determine

To prepare: Budgeted cash payments on account payables.

(2)

Expert Solution

Explanation of Solution

Budgeted Cash Payments on Account payables
Particulars	September Amount ($)	October Amount ($)
Payment for July purchases	35,490
Payment for August purchases	124,320	31,080
Payment for September purchases	54,425	130,620
Payment for October purchases		47,775
Total	214,225	209,475
Table (4)

(3)

To determine

To prepare: Budgeted accounts payable for September and October.

(3)

Expert Solution

Explanation of Solution

Budgeted cash payments on account payables
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)
Beginning accounts payable	0	177,450	190,890	194,355
Add: Budgeted purchases	236,600	207,200	217,700	191,100
Amount payable after purchases [ A ]	236,600	384,650	408,590	385,455
Cash disbursement
Payment for July purchases	59,1501	41,960	35,490
Payment for August purchases		51,800	124,380	31,080
Payment for September purchases			54,425	130,620
Payment for October purchases				47,725
Total Cash payments [ B ]	59,150	193,760	214,235	209,475
Ending accounts payable [ A−B ]	177,450	190,890	194,355	175,980
Table (5)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 29E

(1)

To determine

To prepare: Merchandise purchase budget for July, August, September, October.

(1)

Expert Solution

Explanation of Solution

Merchandise Purchase Budget
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Next month’s cost of goods sold (Working note 1)	245,000	203,000	224,000	192,500	185,500
Ending inventory (Working note 2)	49,000	40,600	44,800	38,500	37,100
Add: Cost of goods sold		245,000	203,000	224,000	192,500
Required inventory		285,600	247,800	262,500	229,600
Less: Opening inventory		49,000	40,600	44,800	38,500
Inventory to be purchased		236,600	207,200	217,700	191,100
Table (1)

Working note:

Formula to calculate next month’s cost of goods sold,

Cost of goods sold=Budgeted sales×70%

Next month’s cost of goods sold
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Cost of goods sold ( Sales×70% )	245,000	203,000	224,000	192,500	185,500
Table (2)

Working note:

Ending inventory
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Next month’s cost of goods sold	245,000	203,000	224,000	192,500	185,500
Ending inventory ( Next month's cost of goods sold×20% )	49,000	40,600	44,800	38,500	37,100
Table (3)

(2)

To determine

To prepare: Budgeted cash payments on account payables.

(2)

Expert Solution

Explanation of Solution

Budgeted Cash Payments on Account payables
Particulars	September Amount ($)	October Amount ($)
Payment for July purchases	35,490
Payment for August purchases	124,320	31,080
Payment for September purchases	54,425	130,620
Payment for October purchases		47,775
Total	214,225	209,475
Table (4)

(3)

To determine

To prepare: Budgeted accounts payable for September and October.

(3)

Expert Solution

Explanation of Solution

Budgeted cash payments on account payables
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)
Beginning accounts payable	0	177,450	190,890	194,355
Add: Budgeted purchases	236,600	207,200	217,700	191,100
Amount payable after purchases [ A ]	236,600	384,650	408,590	385,455
Cash disbursement
Payment for July purchases	59,1501	41,960	35,490
Payment for August purchases		51,800	124,380	31,080
Payment for September purchases			54,425	130,620
Payment for October purchases				47,725
Total Cash payments [ B ]	59,150	193,760	214,235	209,475
Ending accounts payable [ A−B ]	177,450	190,890	194,355	175,980
Table (5)

Answer 6

Chapter 7, Problem 29E

(1)

To determine

To prepare: Merchandise purchase budget for July, August, September, October.

(1)

Expert Solution

Explanation of Solution

Merchandise Purchase Budget
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Next month’s cost of goods sold (Working note 1)	245,000	203,000	224,000	192,500	185,500
Ending inventory (Working note 2)	49,000	40,600	44,800	38,500	37,100
Add: Cost of goods sold		245,000	203,000	224,000	192,500
Required inventory		285,600	247,800	262,500	229,600
Less: Opening inventory		49,000	40,600	44,800	38,500
Inventory to be purchased		236,600	207,200	217,700	191,100
Table (1)

Working note:

Formula to calculate next month’s cost of goods sold,

Cost of goods sold=Budgeted sales×70%

Next month’s cost of goods sold
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Cost of goods sold ( Sales×70% )	245,000	203,000	224,000	192,500	185,500
Table (2)

Working note:

Ending inventory
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Next month’s cost of goods sold	245,000	203,000	224,000	192,500	185,500
Ending inventory ( Next month's cost of goods sold×20% )	49,000	40,600	44,800	38,500	37,100
Table (3)

Answer 7

Chapter 7, Problem 29E

(1)

To determine

To prepare: Merchandise purchase budget for July, August, September, October.

Answer 8

(1)

Expert Solution

Explanation of Solution

Merchandise Purchase Budget
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Next month’s cost of goods sold (Working note 1)	245,000	203,000	224,000	192,500	185,500
Ending inventory (Working note 2)	49,000	40,600	44,800	38,500	37,100
Add: Cost of goods sold		245,000	203,000	224,000	192,500
Required inventory		285,600	247,800	262,500	229,600
Less: Opening inventory		49,000	40,600	44,800	38,500
Inventory to be purchased		236,600	207,200	217,700	191,100
Table (1)

Working note:

Formula to calculate next month’s cost of goods sold,

Cost of goods sold=Budgeted sales×70%

Next month’s cost of goods sold
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Budgeted sales	350,000	290,000	320,000	275,000	265,000
Cost of goods sold ( Sales×70% )	245,000	203,000	224,000	192,500	185,500
Table (2)

Working note:

Ending inventory
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)	October Amount ($)
Next month’s cost of goods sold	245,000	203,000	224,000	192,500	185,500
Ending inventory ( Next month's cost of goods sold×20% )	49,000	40,600	44,800	38,500	37,100
Table (3)

Answer 9

(1)

Expert Solution

Answer 10

(1)

Expert Solution

Answer 11

Expert Solution

Answer 12

(2)

To determine

To prepare: Budgeted cash payments on account payables.

(2)

Expert Solution

Explanation of Solution

Budgeted Cash Payments on Account payables
Particulars	September Amount ($)	October Amount ($)
Payment for July purchases	35,490
Payment for August purchases	124,320	31,080
Payment for September purchases	54,425	130,620
Payment for October purchases		47,775
Total	214,225	209,475
Table (4)

Answer 13

(2)

To determine

To prepare: Budgeted cash payments on account payables.

Answer 14

(2)

Expert Solution

Explanation of Solution

Budgeted Cash Payments on Account payables
Particulars	September Amount ($)	October Amount ($)
Payment for July purchases	35,490
Payment for August purchases	124,320	31,080
Payment for September purchases	54,425	130,620
Payment for October purchases		47,775
Total	214,225	209,475
Table (4)

Answer 15

(2)

Expert Solution

Answer 16

(2)

Expert Solution

Answer 17

Expert Solution

Answer 18

(3)

To determine

To prepare: Budgeted accounts payable for September and October.

(3)

Expert Solution

Explanation of Solution

Budgeted cash payments on account payables
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)
Beginning accounts payable	0	177,450	190,890	194,355
Add: Budgeted purchases	236,600	207,200	217,700	191,100
Amount payable after purchases [ A ]	236,600	384,650	408,590	385,455
Cash disbursement
Payment for July purchases	59,1501	41,960	35,490
Payment for August purchases		51,800	124,380	31,080
Payment for September purchases			54,425	130,620
Payment for October purchases				47,725
Total Cash payments [ B ]	59,150	193,760	214,235	209,475
Ending accounts payable [ A−B ]	177,450	190,890	194,355	175,980
Table (5)

Answer 19

(3)

To determine

To prepare: Budgeted accounts payable for September and October.

Answer 20

(3)

Expert Solution

Explanation of Solution

Budgeted cash payments on account payables
Particulars	June Amount ($)	July Amount ($)	August Amount ($)	September Amount ($)
Beginning accounts payable	0	177,450	190,890	194,355
Add: Budgeted purchases	236,600	207,200	217,700	191,100
Amount payable after purchases [ A ]	236,600	384,650	408,590	385,455
Cash disbursement
Payment for July purchases	59,1501	41,960	35,490
Payment for August purchases		51,800	124,380	31,080
Payment for September purchases			54,425	130,620
Payment for October purchases				47,725
Total Cash payments [ B ]	59,150	193,760	214,235	209,475
Ending accounts payable [ A−B ]	177,450	190,890	194,355	175,980
Table (5)