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needed 527,000 0 470,000 0 41

needed 527,000 0 470,000 0 41

FINANCIAL ACCOUNTING
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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Required A Required B Prepare an inventory purchases budget using the marketing consultant's estimate. Note: Round your final answers to nearest whole dollar amount. Sales Total inventory needed Required purchases $ A First Quarter 527,000 $ 0 Second Quarter 0 Required A 470,000 $ 0 0 $ Third Quarter Required B > 411,000 $ 0 Fourth Quarter 0 646,000 0 0
Transcribed Image Text:Required A Required B Prepare an inventory purchases budget using the marketing consultant's estimate. Note: Round your final answers to nearest whole dollar amount. Sales Total inventory needed Required purchases $ A First Quarter 527,000 $ 0 Second Quarter 0 Required A 470,000 $ 0 0 $ Third Quarter Required B > 411,000 $ 0 Fourth Quarter 0 646,000 0 0
Executive officers of Fanning Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two different sources. Source of Estimate Sales manager Marketing consultant Fanning's past experience indicates that cost of goods sold is about 60 percent of sales revenue. The company tries to maintain 20 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $25,000. Next year's ending inventory is budgeted to be $26,000. Required a. Prepare an inventory purchases budget using the sales manager's estimate. b. Prepare an inventory purchases budget using the marketing consultant's estimate. Complete this question by entering y Assessment Tool iFrame tabs below. Show Transcribed Text First Quarter Second Quarter $ 383,000 $ 304,000 527,000 470,000 Sales Required A Required B Required A Prepare y purchases budget using the sales manager's estimate. Note: Round your final answers to nearest whole dollar amount. Total inventory needed Required purchases $ $ First Quarter 383,000 $ 0 0 Third Quarter Fourth Quarter $ 273,000 $ 471,000 411,000 646,000 Required A Second Quarter $ 304,000 $ 0 Third Quarter 0 $ Required B > 273,000 0 0 Fourth Quarter 471,000 $ $ 0 0
Transcribed Image Text:Executive officers of Fanning Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two different sources. Source of Estimate Sales manager Marketing consultant Fanning's past experience indicates that cost of goods sold is about 60 percent of sales revenue. The company tries to maintain 20 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $25,000. Next year's ending inventory is budgeted to be $26,000. Required a. Prepare an inventory purchases budget using the sales manager's estimate. b. Prepare an inventory purchases budget using the marketing consultant's estimate. Complete this question by entering y Assessment Tool iFrame tabs below. Show Transcribed Text First Quarter Second Quarter $ 383,000 $ 304,000 527,000 470,000 Sales Required A Required B Required A Prepare y purchases budget using the sales manager's estimate. Note: Round your final answers to nearest whole dollar amount. Total inventory needed Required purchases $ $ First Quarter 383,000 $ 0 0 Third Quarter Fourth Quarter $ 273,000 $ 471,000 411,000 646,000 Required A Second Quarter $ 304,000 $ 0 Third Quarter 0 $ Required B > 273,000 0 0 Fourth Quarter 471,000 $ $ 0 0
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