Estimate purchases (in units) and cash required to make purchases in July, August, and September.
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- Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $16.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,600 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July 8,020 August 10,990 September 8,460 October 9,010 November 6,480 December 5,160 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September. DAWES DESIGNS Merchandise Purchases Budget For the Period Ended March 31 (in units) July August September Units to be purchased ?? ?? ?? Estimated cost $ ?? $ ?? $ ??Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $16.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,600 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July August September October November December 8,020 10,990 8,460 9,010 6,480 5,160 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September. Units to be purchased DAWES DESIGNS Merchandise Purchases Budget For the Period Ended March 31 (in units) July August SeptemberDawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $18.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,800 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: July August September October November December 8,220 11,190 8,660 9,210 6,680 5,360 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in July, August, and September. Units to be purchased Estimated cost DAWES DESIGNS Merchandise Purchases Budget For the Period Ended March 31 (in units) July August September
- Tri-State Bank and Trust is considering giving Swifty Company a loan. Before doing so, management decides that further discussions with Swifty's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $310,000. Discussions with the accountant reveal the following. 1. 2. 3. 4. 5. Swifty shipped goods costing $36,000 to Lilja Company, FOB shipping point, on December 28. The goods are not expected to arrive at Lilja until January 12. The goods were not included in the physical inventory because they were not in the warehouse. The physical count of the inventory did not include goods costing $92,000 that were shipped to Swifty FOB destination on December 27 and were still in transit at year-end. Swifty received goods costing $20,000 on January 2. The goods were shipped FOB shipping point on December 26 by Brent Co. The goods were not included in the physical count. Swifty shipped goods costing $35,000 to Jesse Co., FOB…During February, the last month of the fiscal year, Be My Valentine Ltd. sells $20,200 of gift cards. From experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In March, $4,600 of these cards is redeemed for merchandise with a cost of $2,500. In April, further $11,500 of these cards is redeemed for merchandise with a cost of $3,800. The company uses a perpetual inventory system. Also in February, Be My Valentine had $1,000 of unused gift cards that were over one year old and were not expected to be used. The amount was in line with the company's normal breakage and all other gift cards of the same age had been used. Your answer is correct. Prepare journal entries to record the transactions for February, March, and April. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles…During February, the last month of the fiscal year, Be My Valentine Ltd. sells $21,400 of gift cards. From experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In March, $4,600 of these cards is redeemed for merchandise with a cost of $2,500. In April, further $13,800 of these cards is redeemed for merchandise with a cost of $4,600. The company uses a perpetual inventory system. Also in February, Be My Valentine had $1,000 of unused gift cards that were over one year old and were not expected to be used. The amount was in line with the company's normal breakage and all other gift cards of the same age had been used.
- A musical group plans to sell T-shirts bearing their logo at an upcoming concert. They find a supplier who charges $2.50 per plain T-shirt. Printing the logo on the shirt requires a set-up charge of $50 for the order plus $0.75 per shirt. The group places an order for 200 T-shirts and pays a shipping fee of $15 upon receipt. What is the total dollar amount that should be debited to the inventory account for the 200 T-shirts?Tri-State Bank and Trust is considering giving Crane Company a loan. Before doing so, management decides that further discussions with Crane's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $290,000. Discussions with the accountant reveal the following. 1. 2. 3. 4. 5. Crane shipped goods costing $34,000 to Lilja Company, FOB shipping point, on December 28. The goods are not expected to arrive at Lilja until January 12. The goods were not included in the physical inventory because they were not in the warehouse. The physical count of the inventory did not include goods costing $91,000 that were shipped to Crane FOB destination on December 27 and were still in transit at year-end. Crane received goods costing $22,000 on January 2. The goods were shipped FOB shipping point on December 26 by Brent Co. The goods were not included in the physical count. Crane shipped goods costing $33,000 to Jesse Co., FOB destination, on…Tri-State Bank and Trust is considering giving Waterway Company a loan. Before doing so, management decides that further discussions with Waterway's accountant may be desirable. One area of particular concern is the inventory account, which has a year- end balance of $302,000. Discussions with the accountant reveal the following. 1. 2. 3. 4. 5. Waterway sold goods costing $36,000 to Lilja Company, FOB shipping point, on December 28. The goods are not expected to arrive at Lilja until January 12. The goods were not included in the physical inventory because they were not in the warehouse. The physical count of the inventory did not include goods costing $95.000 that were shipped to Waterway FOB destination on December 27 and were still in transit at year-end. Waterway received goods costing $21,000 on January 2. The goods were shipped FOB shipping point on December 26 by Brent Co. The goods were not included in the physical count. Waterway sold goods costing $30,000 to Jesse Co., FOB…
- Ayayai Taco Palace sells 240 gift cards at $40 per gift card and 120 of the gift cards are redeemed by year-end. Ayayai estimates that it will have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, e.g. 0.2456 and final answers to O decimal places, e.g. 5,125.) Account Titles and Explanation Unearned Gift Card Revenue Sales Revenue Sales Revenue (Breakage) Debit Credit 4800 960Baird Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $9 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $21 per shirt. Required a. What are the total cost of shirts and cost per shirt if sales amount to 3,000, 3,500, 4,000, 4,500, or 5,000? b. Is the cost of T-shirts a fixed or a variable cost? Complete this question by entering your answers in the tabs below. Required A Required B What are the total cost of shirts and cost per shirt if sales amount to 3,000, 3,500, 4,000, 4,500, or 5,000? Number of shirts sold 3,000 3,500 4,000 4,500 5,000 Total cost of shirts Cost per shirtBell Entertainment sells souvenir T-shirts at each rock concert that it sponsors. The shirts cost $7 each. Any excess shirts can be returned to the manufacturer for a full refund of the purchase price. The sales price is $16 per shirt. Required a. What are the total cost of shirts and cost per shirt if sales amount to 2,000, 2,500, 3,000, 3,500, or 4,000? b. Is the cost of T-shirts a fixed or a variable cost? Complete this question by entering your answers in the tabs below. Required A Required B What are the total cost of shirts and cost per shirt if sales amount to 2,000, 2,500, 3,000, 3,500, or 4,000? Number of shirts sold 2,000 2,500 3,000 3,500 4,000 Total cost of shirts Cost per shirt