3. Merchandise Purchases Budget CIT Merchandising has budgeted the following sales for the 2nd quarter of 2021: Other budgeted estimates are: . April P 123,500 May 156,000 June 208,000 All merchandises are to sell at its invoice cost plus 30% mark-up. Beginning inventories of each month are budgeted at 40% of that particular month's projected cost of goods sold. REQUIRED: Determine the projected amount for: A) Merchandise purchases in April. B) Merchandise purchases in May.

3. Merchandise Purchases Budget CIT Merchandising has budgeted the following sales for the 2nd quarter of 2021: Other budgeted estimates are: . April P 123,500 May 156,000 June 208,000 All merchandises are to sell at its invoice cost plus 30% mark-up. Beginning inventories of each month are budgeted at 40% of that particular month's projected cost of goods sold. REQUIRED: Determine the projected amount for: A) Merchandise purchases in April. B) Merchandise purchases in May.

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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Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April 210 May 140 June 150 July 200 August 160 Each candle costs $ 10. 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 $2,460. Required: a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign.a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign. b. Prepare a cash payments budget for the quarter ending June 30.
Paddle Up, a retailer of paddle boards, has provided you with the following information: Budgeted Sales (units) February 2022 150 March 2022 110 April 2022 70 a) Paddle Up sells each board for $400 and purchases each board for $250. b) Paddle Up plans to maintain inventory on hand at the end of each month to be 20% of next month's sales volume. You can assume this to be the situation at the end of January 2022. c) 40% of sales are made on cash basis with the remaining 60% - on credit. All credit sales are collected in the month following the sale. d) 50% of inventory purchases are made on cash basis with the remaining 50% - on credit. All credit purchases are paid in the month following the purchase. e) The following cash expenses are incurred on a monthly basis: Rent ($5,300); Wages ($5,400); Utilities ($2,100); Insurance ($600). The business also recognises $3,000 of depreciation expense each month. f) The monthly drawings by the owner Paddle Up include: $2,000 cash and 1 board for…
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Indigo Company budgeted the following information for 2022: Budgeted purchases of merchandise ● ● May $105,000 Cost of goods sold is 40% of sales. Accounts payable is used only for merchandise inventory acquisitions. • Indigo purchases and pays for merchandise 70% in the month of acquisition and 30% in the following month. Selling and administrative expenses are budgeted at $36,000 for May and are expected to increase 5% per month. These expenses are paid during the month when incurred. In addition, depreciation is budgeted at $10,000 per month. Income taxes are $39,000 for July and are paid in the month incurred. Cash Disbursements June $ $110,000 Compute the amount of budgeted cash disbursements for July. July $103,000
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(J) please answer ASap... Question 1 The following table presents selected information for Superior Flooring's monthly production budgets for the coming year. Superior's inventory policy is to have ending inventory equal to 10% of the next month's sales. What is the beginning inventory in June? A. 350 B. 310 C. 250 D. 340 Question 2 Which of the following statements is true? A. A budget reconciliation report shows the difference between actual profit and budgeted profit and does not show the other variances. B. Activity-based costing is not used to evaluate customer profitability. C. Sales quantity (budgeted sales volume vs. actual sales volume) is the only item which differs between the master budget and the flexible budget. D. Comparing the flexible budget to the as-if budget isolates a change in input price (e.g. budgeted input price vs. actual input price). Question 3 Which of the following is not a benefit of budgeting? A. It reduces the need for analysis with regard to company…
The Foress Antique Mall budgeted credit sales in the first quarter of 2021 to be as follows: January February March $188,800 200,600 214,000 Credit sales in December 2020 are expected to be $236,000. The company expects to collect 70 percent of a month's sales in the month of sale and 30 percent in the following month. Estimate cash receipts for each month of the first quarter of 2021. Collection of credit sales Collection of December sales $ Collection of January sales Collection of February sales Collection of March sales $ January $ $ February $ $ March Ac Go
Budget for a merchandising company Nano,inc.is preparing its budget for the second quarter . The following sales data have been forecasted: April. May. June. June July U/sales. 640. 720. 780. 620. 660 Additional information follows: inventory on March 31: 192 units Desired ending inventory each month: 30% of next month's sales. How many units should be produced in April, May and June? How many units should be produced in the second quarter in total? You can Write your answers on this sheet as an excel table or a pasted word documentable.
Please help me with show all calculation thanku