Question
In: Accounting
Franklin, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget...
Franklin, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget for April, May, June, and July.
| April | May | June | July | |
| Budgeted cost of goods sold | $73,000 | $83,000 | $93,000 | $99,000 |
Franklin had a beginning inventory balance of $3,800 on April 1 and a beginning balance in accounts payable of $15,100. The company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. Franklin makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase.
Required
-
Prepare an inventory purchases budget for April, May, and June.
-
Determine the amount of ending inventory Franklin will report on the end-of-quarter pro forma balance sheet.
-
Prepare a schedule of cash payments for inventory for April, May, and June.
-
Determine the balance in accounts payable Franklin will report on the end-of-quarter pro forma balance sheet.
- Required A
- Required B
- Required C
- Required D
Prepare an inventory purchases budget for April, May, and June.
|
Determine the amount of ending inventory Franklin will report on the end-of-quarter pro forma balance sheet.
|
Prepare a schedule of cash payments for inventory for April, May, and June. (Round your final answers to the nearest whole dollar.)
|
Determine the balance in accounts payable Franklin will report on the end-of-quarter pro forma balance sheet.
|
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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developed the following cost of goods sold budget for April, May,
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April
May
June
July
Budgeted cost of
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$77,000
$87,000
$97,000
$103,000
Campbell had a beginning inventory balance of $4,400 on April 1
and a beginning balance in accounts payable of $14,900. The company
desires to maintain an ending inventory balance equal to 15 percent
of the next period’s cost of goods sold. Campbell makes all
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June, and July.
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May
June
July
Budgeted cost of goods sold
$64,000
$74,000
$84,000
$90,000
Rooney had a beginning inventory balance of $3,100 on April 1
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developed the following cost of goods sold budget for April, May,
June, and July.
April
May
June
July
Budgeted cost of goods sold
$61,000
$71,000
$81,000
$87,000
Campbell had a beginning inventory balance of $3,400 on April 1
and a beginning balance in accounts payable of $15,700. The company
desires to maintain an ending inventory balance equal to 15 percent
of the next period’s cost of goods sold. Campbell makes all
purchases...
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developed the following cost of goods sold budget for April, May,
June, and July.
April
May
June
July
Budgeted cost of
goods sold
$69,000
$79,000
$89,000
$95,000
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From the following details provided by Barry, Inc., prepare the
cost of goods sold budget for the year (complete the below
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Direct materials per
unit
$65
Direct labor hours per
unit
2 hours
Direct labor rate per
hour
$50
Manufacturing overhead cost per direct labor
hour
$20
Beginning inventory
units
1,000
Sales price per
unit
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First
Second
Third
Fourth
Quarter
Quarter
Quarter
Quarter
Units expected to be
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15,000
18,000
21,000
24,000
Barry, Inc. expects...
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1.
To adjust a company’s LIFO cost of goods sold to FIFO cost of
goods sold
the ending LIFO reserve is added to LIFO cost of goods sold.
the ending LIFO reserve is subtracted from LIFO cost of goods
sold.
an increase in the LIFO reserve is subtracted from LIFO cost of
goods sold.
a decrease in the LIFO reserve is subtracted from LIFO cost of
goods sold.
2.
All of the following statements are true regarding the LIFO
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Total
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$7,870
$146,130
$191,470
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5,710
9,520
17,610
Desired inventory, September 30
2,670
2,430
6,410
11,510
Direct labor cost:
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Decorating Department
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Each candle requires molding. Assume that 12 minutes are
required to mold each candle. Molding labor costs $14.00...
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