The company, a wholesaler, budgeted sales for the indicated months June July August Sales on account P1,800,000 P1,920,000 P2,010,000 Cash sales 240.000 250.000 260.000 Total sales P2,010,000 P2,170,000 P2,300,000 All merchandise is marked up to sell at its invoice cost plus 25%. Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold. The cost of goods sold for the month of June is anticipated to be

The company, a wholesaler, budgeted sales for the indicated months June July August Sales on account P1,800,000 P1,920,000 P2,010,000 Cash sales 240.000 250.000 260.000 Total sales P2,010,000 P2,170,000 P2,300,000 All merchandise is marked up to sell at its invoice cost plus 25%. Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold. The cost of goods sold for the month of June is anticipated to be

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9PB: Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May,...

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All Temps has a policy of always paying within the discount period, and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 80% of its payments are made in the month of purchase and 20% are made the following month. The direct materials budget provides for purchases of $23,812 in February, $23,127 in March, $21,836 in April, and $28,173 in May.What is the balance in accounts payable for April 30, and May 31?
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.
Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance pad the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,000, $37,000, and $39,000, respectively.
Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May, and June if 60% of sales are collected in the month of sale, 30% are collected the month after the sale, and 10% are collected the second month after the sale?
Cranes, Inc. provided the following budgeted information for March through July: Projected sales Projected merchandise purchases Inventory at end of month March April May July $85770 $100860 $94300 $108240 $115950 $67240 $59860 $9840 O $4995. O $6890. O $5250. O $3675. $75770 $61750 $11150 $9270 June $54610 $10170 $11730 Cranes estimates that it will collect 30% of its sales in the month of sale and 70% in the month after the sale. General operating expenses are budgeted to be $25420 per month of which depreciation is $25420 of this amount. Crane pays operating expenses in the month incurred. The income tax rate is 30%. How much is budgeted net income for May?
Cullumber Company, a wholesaler, budgeted the following sales for the indicated months: June July August Sales on account $3900000 $3960000 $4050000 Cash sales 390000 420000 510000 Total sales $4290000 $4380000 $4560000 All merchandise is marked up to sell at its invoice cost plus 30%. Merchandise inventories at the beginning of each month are at 20% of that month's projected cost of goods sold.Merchandise purchases for July are anticipated to be
Blue Spruce, Inc. provided the following information: March April May Projected merchandise purchases $67,000 $77,500 $81,500 • Blue Spruce pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month. • General operating expenses are budgeted to be $24,000 per month of which depreciation is $2,300 of this amount. Blue Spruce pays operating expenses in the month incurred. Calculate Blue Spruce’s budgeted cash disbursements for May. Budgeted cash disbursements $enter the budgeted cash disbursements in dollars
2. FGH company budgeted merchandise purchases of 50,000 units next. The expected beginning inventory is 15,000, and the desired ending inventory at the end of next month is 17,500 units. Budgeted sales in units for next month is A. P53,000 B. P35,000 C. P47,500 D. P67,500
Oriole Enterprises reports all its sales on credit, and pays operating costs in the month incurred. Estimated amounts for the months of June through October are: August September October July $272800 $290400 $264000 $246400 $228800 $79200 June Budgeted sales Budgeted purchases $126720 $105600 $112640 O $279840. O $256080. O $158400. O. $274560. $116160 Customer amounts on account are collected 60% in the month of sale and 40% in the following month. Cost of goods sold is 45% of sales. Oriole purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month. How much cash is budgeted to be received during August?
JNT Store expets to generate the following sales for the next three months: August September October Expected sales 460,000 580,000 620,000 JNT's cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold. What dollar amount of desired ending merchandise inventory ojnt in September?
The following information is available from the accounting records of Waxford Ltd.: 19-- January February March April Purchases R42 000 48 000 54 000 36 000 Purchases Total sales Administrative expenses Total sales R72 000 66 000 Twenty percent of sales are expected to be for cash. Collections from customers are normally 70% in the month of sale, 20% in the month following the month of sale, and 9% in the second month following the month of sale. Customers paying in the month of sale get a 5% discount. 78 000 60 000 The corporation pays its creditors in the month following the month of purchase, and qualifies for a 5% discount on all its purchases. Budgeted information for the months of May and June is as follows: May R45 000 72 000 14 500 June R42 000 70 000 16 600 Administrative expenses, which include depreciation of R600 per month, are payable in the month incurred. Rates for the year, amounting to R1 500, are included in the administrative expenses for June. The balance per cash…