FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Concept explainers
Question
Purchases Budget
Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins for the first six months of the year is presented below.
| Unit Sales | Dollar Sales | |
| January | 200 | $1,800 |
| February | 190 | 1,710 |
| March | 210 | 1,890 |
| April | 220 | 1,980 |
| May | 240 | 2,160 |
| June | 230 | 2,070 |
The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next month’s projected sales. On January 1, 24 bottles of vitamins were in inventory.
Required:
Question Content Area
1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can.
| January | February | March | April | May | |
|---|---|---|---|---|---|
| Unit sales | fill in the blank fe8290f72fd6f81_1 | fill in the blank fe8290f72fd6f81_2 | fill in the blank fe8290f72fd6f81_3 | fill in the blank fe8290f72fd6f81_4 | fill in the blank fe8290f72fd6f81_5 |
| Desired EI | fill in the blank fe8290f72fd6f81_6 | fill in the blank fe8290f72fd6f81_7 | fill in the blank fe8290f72fd6f81_8 | fill in the blank fe8290f72fd6f81_9 | fill in the blank fe8290f72fd6f81_10 |
| Total needed | fill in the blank fe8290f72fd6f81_11 | fill in the blank fe8290f72fd6f81_12 | fill in the blank fe8290f72fd6f81_13 | fill in the blank fe8290f72fd6f81_14 | fill in the blank fe8290f72fd6f81_15 |
| Less: BI | fill in the blank fe8290f72fd6f81_16 | fill in the blank fe8290f72fd6f81_17 | fill in the blank fe8290f72fd6f81_18 | fill in the blank fe8290f72fd6f81_19 | fill in the blank fe8290f72fd6f81_20 |
| Unit purchases | fill in the blank fe8290f72fd6f81_21 | fill in the blank fe8290f72fd6f81_22 | fill in the blank fe8290f72fd6f81_23 | fill in the blank fe8290f72fd6f81_24 | fill in the blank fe8290f72fd6f81_25 |
Question Content Area
2. If vitamins are priced at cost plus 80 percent, what is the dollar cost of purchases for each month of your purchases budget?
| January | $fill in the blank 6b5568076058fe0_1 |
| February | fill in the blank 6b5568076058fe0_2 |
| March | fill in the blank 6b5568076058fe0_3 |
| April | fill in the blank 6b5568076058fe0_4 |
| May | fill in the blank 6b5568076058fe0_5 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Preparing a Direct Materials Purchases Budget Patrick Inc. makes industrial solvents sold in 5-gallon drum containers. Planned production in units for the first 3 months of the coming year is: January 40,000 February 55,000 March 65,000 Each drum requires 6 gallons of chemicals and one plastic drum container. Company policy requires that ending inventories of raw materials for each month be 20% of the next month's production needs. That policy was met for the ending inventory of December in the prior year. The cost of one gallon of chemicals is $2.00. The cost of one drum is $1.60. Required: 1. Calculate the ending inventory of chemicals in gallons for December of the prior year, and for January and February. What is the beginning inventory of chemicals for January? Round your answers to the nearest whole gallon. Ending inventory for December gallons Ending inventory for January gallons Ending inventory for February gallons Beginning inventory for January gallons 2. Prepare a direct…arrow_forwardPlease do not give solution in image format thankuarrow_forwardPlease do not give solution in image format thankuarrow_forward
- Direct Materials Purchases Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. Flash Kick's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 50,000 $8.75 7,000 $16.00 February 58,000 $8.75 7,500 $16.00 March 80,000 April 100,000 $8.75 $8.75 13,000 18,000 $16.00 $16.00 Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. FlashKick's policy is that 20 percent of the following month's production needs forarrow_forwardCash Budget LeeAnn Ortiz owns a retail store that sells new and used sporting equipment. LeeAnn has requested a cash budget for October. After examining the records of the company, you find the following: Cash balance on October 1 is $1,110. Actual sales for August and September are as follows: August September Cash sales $6,000 $4,500 Credit sales 58,000 61,000 Total sales $64,000 $65,500 Credit sales are collected over a three-month period: 40 percent in the month of sale, 36 percent in the next month, and 22 percent in the second month after the sale. The remaining sales are uncollectible. Inventory purchases average 70 percent of a month's total sales. Of those purchases, 45 percent are paid for in the month of purchase. The remaining 55 percent are paid for in the following month. Salaries and wages total $3,850 per month. Rent is $3,150 per month. Taxes to be paid in October are $1,635. LeeAnn usually withdraws $3,500…arrow_forwardPrint Item Navigator sells GPS trackers for $60 each. It expects sales of 5,700 units in quarter 1 and a 5% increase each subsequent quarter for the next 8 quarters. Prepare a sales budget by quarter for the first year. Round final answers to nearest whole dollar. Navigator Sales Budget For the Year Ending Dec. 31, 20XX Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Expected Sales (Units) Sales Price per Unit Total Sales Revenue Feedback Check My Work Increase the expected sales amount each quarter by 5%. Previousarrow_forwardPlease do not give solution in image format thankuarrow_forwardPlease do not give solution in image format thankuarrow_forwardProduction and Purchases Budgets Drainage Solutions Culverts produces small culverts for water drainage under two-lane dirt roads. Budgeted unit sales for the next several months are: Month Sales September 2,100 October 1,600 November 900 December 600 At the beginning of September, 525 units of finished goods were in inventory. During the final third of the year, as road construction declines, plans are to have an inventory of finished goods equal to 25 percent of the following month's sales. Each unit of finished goods requires 600 pounds of raw materials at a cost of $5 per pound. Management wishes to maintain month-end inventories of raw materials equal to 50 percent of the following month's needs. Five hundred thousand pounds of raw materials were on hand at the start of September. Required a. Prepare a production budget for September, October, and November. Do not use a negative sign with your answers. Drainage Solutions Culverts Production Budget For the Months of September,…arrow_forward8. Central Drug Store carries a variety of health and beauty aids, including elastic ankle braces. The sales budget for ankle braces for the first six months of the year is as follows. The owner of Central Drug believes that ending inventories should be sufficient to cover 20 percent of the next month’s projected sales. On January 1, there were 84 ankle braces in inventory. If ankle braces are priced at cost plus 60 percent Calculate the merchandise purchases budget in units of ankle braces for March.arrow_forwardPlease do not give solution in image format thankuarrow_forwardsubject - accountingarrow_forwardarrow_back_iosSEE MORE QUESTIONSarrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education