Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April May June July August 170 140 270 230 230 Each candle costs $11. The ending inventory policy is 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $2,600. Required: a. Prepare a purchases budget for the quarter ending June 30, Note: Deductible values must be indicated with a minus sign. Budgeted unit sales Plus: Ending inventory Less: Beginning inventory Budgeted purchases (units) Cost of merchandise (per unit) Total cost of merchandise purchases Merchandise Purchases Budget (Candles) For the Quarter Ending June 30 April May b. Prepare a cash payments budget for the quarter ending June 30. Budgeted merchandise purchases Cash paid month of purchase (30%) Cash paid in month following (70%) Cash paid for merchandise purchases Budgeted Cash Payments (Candles) For the Quarter Ending June 30 April May June June Total Total

Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April May June July August 170 140 270 230 230 Each candle costs $11. The ending inventory policy is 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $2,600. Required: a. Prepare a purchases budget for the quarter ending June 30, Note: Deductible values must be indicated with a minus sign. Budgeted unit sales Plus: Ending inventory Less: Beginning inventory Budgeted purchases (units) Cost of merchandise (per unit) Total cost of merchandise purchases Merchandise Purchases Budget (Candles) For the Quarter Ending June 30 April May b. Prepare a cash payments budget for the quarter ending June 30. Budgeted merchandise purchases Cash paid month of purchase (30%) Cash paid in month following (70%) Cash paid for merchandise purchases Budgeted Cash Payments (Candles) For the Quarter Ending June 30 April May June June Total Total

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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