Explanation Budget: It is estimated figures for future income or expenses under related terms. Company CCS Cost of goods sold, inventory, and Purchase budget For January to August Cost of goods sold budget Quarter 1st Quarter 2nd Quarter 3rd Quarter Budgeted sells (a) 125,000 175,000 150,000 Cost of goods sold ( b = a × 70 % ) 87,500 122,500 105,000 Inventory budget Beginning inventory (c) 23,125 28,375(1) 25,750(2) Plus: Purchase ( d = b + e − c ) 92,750 119,875 126,000 Less: Cost of goods sold (b) 87,500 122,500 105,000 Closing inventory (e) 28,375(1) 25,750(2) 46,750(3) Table (1) Given: Closing inventory is $10,000 plus 15% of next quarter cost of goods sold and it becomes the beginning inventory for the next month. Cost of goods sold given is 70% of revenue. Next quarter expected sell is $245,000. Beginning inventory for 1 st quarter is $23,125

Managerial Accounting, Student Value Edition (5th Edition)

5th Edition

ISBN: 9780134067179

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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Chapter 9, Problem 9.56BE

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Chapter 9 Solutions

Managerial Accounting, Student Value Edition (5th Edition)

Ch. 9 - (Learning Objective 1) Which term describes the...Ch. 9 - (Learning Objective 1) Benefits of budgeting...Ch. 9 - Prob. 3QC Ch. 9 - Prob. 4QC Ch. 9 - Prob. 5QC Ch. 9 - Prob. 6QC Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Prob. 9QC Ch. 9 - Prob. 10QC

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