FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Jackson Inc. produces leather handbags. The production budget for the next four months is: July 5,300 units, August 7,700 units, September 8,400 units, October 8,100 units. Each handbag requires 0.5 square meters of leather. Jackson Inc.’s leather inventory policy is 30% of next month’s production needs. On July 1 leather inventory was expected to be 795 square meters. What will leather purchases be in July? Multiple Choice 2,760 square meters 4,035 square meters 3,010 square meters 3,160 square metersarrow_forwardShamrock Shades purchases sunglasses from bulk discounters and sells the sunglasses in mall kiosks throughout the Pacific Northwest. Shamrock is in the process of budgeting for the coming year and has projected sales of $360,000 for January, $440,000 for February, $600,000 for March, and $640,000 for April. Shamrock's desired ending inventory is 55 percent of the following month's cost of goods sold. Cost of goods sold is expected to be 45 percent of sales. Required: Compute the required purchases for each month of the first quarter (January through March). January Required Purchases February Marcharrow_forwardLakeside Components wishes to purchase parts in one month f although sales for June are estimated to total 11,000 parts. Total Parts are purchased at a wholesale price of $15. The supplier ha percent of the purchase price in the month when the parts are 15,000 parts in May. Required: a. Estimate purchases (in units) for June and July. b. Estimate the cash required to make purchases in June and Ju Complete this question by entering your answers in the ta Required A Required B Estimate purchases (in units) for June and July. Merchandise to be purchased in units June July 15,000arrow_forward
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