In May 2022, the budget committee of Whispering Winds Stores assembles the following data for preparing the merchandise purchases budget for the month of June: 1. Expected sales: June $536,000; July $574,000. 2. Cost of goods sold is expected to be 75% of sales. 3. Desired ending merchandise inventory is 30% of the following month's cost of goods sold. 4. The beginning inventory at June 1 will be the desired amount. (a) * Your answer is incorrect. Calculate the budgeted merchandise purchases for June. Budgeted merchandise purchases $ 393600

In May 2022, the budget committee of Whispering Winds Stores assembles the following data for preparing the merchandise purchases budget for the month of June: 1. Expected sales: June $536,000; July $574,000. 2. Cost of goods sold is expected to be 75% of sales. 3. Desired ending merchandise inventory is 30% of the following month's cost of goods sold. 4. The beginning inventory at June 1 will be the desired amount. (a) * Your answer is incorrect. Calculate the budgeted merchandise purchases for June. Budgeted merchandise purchases $ 393600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2020. 1. Sales for May are expected to be $800,000. Sales in June and July are expected to be 5% higher than the preceding month. 2. Cost of goods sold is expected to be 75% of sales. 3. Company policy is to maintain ending merchandise inventory at 10% of the following month's cost of goods sold. 4. Operating expenses are estimated to be as follows: $35,000 per month 6% of monthly sales 2% of monthly sales 5% of monthly sales $5,000 per month $800 per month $600 per month $500 per month 5. Interest expense is $2,000 per month. Income taxes are estimated to be 30% of income before income taxes. Sales salaries Advertising Delivery expense Sales commissions Rent expense Depreciation Utilities Insurance Requirements: a. Prepare the merchandise purchases budget for each month in columnar form. b. Prepare budgeted multiple-step income statements…
7. Hayma Company's sales budget for 2022 in units for the next five months is as follows: January 20,000, February 26,000, March 32,000, April 40,000 and May 42,000. The Company's ending finished goods inventory policy is set for 25% of the following month's sales. January 1 beginning inventory is 2,800 units. How many units will be produced in January?
Boris detergents expects to have a cash balance of P46,000 on January 1, 2020. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January P71,000, February P146,000. 2. Payments to suppliers: January P40,000, February P75,000. 3. Wages: January P30,000, February P40,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January P21,000, February P24,000. These costs include depreciation of P1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January P15,000, February P20,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize P12,000 in cash. The Company has a line of credit at a local bank that enables it to borrow up to P25,000. The company wants to maintain a minimum monthly cash balance of P20,000. Prepare a cash budget for January and February.
Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2017: * Revenues budget (in dollars)
answer in text form please (without image
LA Vaughn Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $400,000 for April and $500,000 for May. Cost of goods sold is expected to be 62% of sales. The company's desired ending inventory is 21% of the following month's cost of goods sold. Calculate the required purchases for April. VAUGHN WHOLESALERS Merchandise Purchases Budget For the Month of April, 2022 LA
The SK Industries, Ine. manufactures and sells two products, Accel Active and Accel Regular. In September 2018, SK Industries Budget Department gathered the following data in order to prepare budgets for 2019: 2019 Projected Sales Product Units Price Accel Active 45,000 s225 Accel Regular 75,000 s1s5 Expected Target Inventories Product January 1, 2019 December 31, 2019 Accel Active 9,000 12,000 Accel Regular 17,000 25,000 The following direct materials are expeceted to be used in the two products: |Material Used per Unit Direcet Material Unit Accel Active Accel Regular pound One 6 Two pound 4 2 Three pound 2 Projected data for 2019 with respect to direct materials are as follows: Direct Material Expected Purchase PriceExpected Inventories Target Inventories (January 1, 2019) December 31, 2019) One SIS 27,000 Ib 35,000 lb Two S7 30,000 lb 35,000 lb Three $4 4,000 lb 7,000 lb Projected direct labor requirements and rates for 2019 are as follows: Hours Per Unit Rate Per Hour Product Accel…
Use the information provided below to calculate the number of units of Product Blue that must be produced for September and October 2023. The estimated sales volume of Product Blue is 25 000 units for August, 21 000 units for September, 30 000 units for 0ctober and 36 000 units for November. The management policy maintains an ending finished goods inventory each month equalling to 20% of the current month’s budgeted sales and 30% of the following month’s budgeted sales.
NUBD Company has budgeted its activity for October 2021 based on the following information:i. Sales are budgeted at P300,000. All sales are credit sales and a provision for doubtful accounts is made monthly at the rate of 3% of sales. ii. Merchandise inventory was P70,000 at September 30, 2021 and an increase of P10,000 was planned for the month. iii. All merchandise is marked-up to sell at invoice cost plus 50%. (Gross profit rate based on cost) iv. Estimated cash disbursements for selling and administrative expenses for the month are P40,000. v. Depreciation for the month is projected at P5,000. NUBD is projecting operating income for the month of October 2021 in the amount of:a. 96,000 b. 56,000 c. 55,000 d. 46,000
Hayma Company's sales budget for 2022 in units for the next five months is as follows: January 20,000. February 26,000, March 32,000, April 40,000 and May 42,000. The Company's ending finished goods inventory policy is set for 25% of the following month's sales. January 1 beginning inventory is 2,800 units. How many units will be produced in February? O a. 24,700 O b. None of the given answers. O c. 40,500 O d. 27,500 О е. 34,000 O f. 24,500 ere to search 11:42 ADA dx ENG 22-05-2021 hp 40 141 bet sc delete home end +backspace lock T. 8 A home K enter 5 0 pause t shift SS end ctri
The SK Industries, Inc. manufactures and sells two products, Accel Active and Accel Regular. In September 2018, SK Industries Budget Department gathered the following data in order to prepare budgets for 2019: 2019 Projected Sales Product Accel Active 45,000|s225 |Units Price Accel Regular 75,000 S1s5 Expected Target Inventories Product January 1, 2019 December 31, 2019 Accel Active 9,000 12,000 Accel Regular 17,000 25,000 The following direct materials are expected to be used in the two products: Material Used per Unit Direct Material Unit Accel Active Accel Regular pound One 6. Two pound 4 2 Three pound Projected data for 2019 with respect to direct materials are as follows: Direct Material Expected Purchase PriceExpected Inventories Target Inventories (January 1, 2019) (December 31, 2019) One $15 27,000 lb 35,000 lb Two S7 30,000 lb 35,000 lb Three $4 4,000 lb 7,000 lb Projected direct labor requirements and rates for 2019 are as follows: Product Hours Per Unit Rate Per Hour Accel…
MORGAN Merchandising is preparing its Production Budget for the 3rd Quarter of 2020. Its Sales Budget is prepared using a budgeted sales price per unit agreed upon at the beginning of the year. To help in the Production budget preparation, the following information are given: 1. Inventories at the end of 2019 can be sold for a total of P225,000 at a sales price of P250 per unit. 2. Production runs are only done at the start of each quarter. 3. A minimum of 200 units are to be maintained at the end of each quarter to serve as buffer stocks. 4. Budgeted quantities sold for the 1st quarter of 2020 is 4,500 units. 5. It is forecasted that the same quantities will be sold per month of each quarter. 6. It is estimated that quantities sold will increase by 500 units at the start of each quarter. 7. MORGAN Merchandising estimates a gross profit rate of 35%. What is the beginning inventory for March 2020? A 200 В 1,700 c) 1,500