Question
In: Accounting
Campbell, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget...
Campbell, 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 | $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 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
A. Prepare an inventory purchases budget for April, May, and June.
B. Determine the amount of ending inventory Campbell will report on the end-of-quarter pro forma balance sheet.
C. Prepare a schedule of cash payments for inventory for April, May, and June.
D. Determine the balance in accounts payable Campbell will report on the end-of-quarter pro forma balance sheet.
A. Prepare an inventory purchases budget for April, May, and June.
|
B. Ending Inventory:
C. Prepare a schedule of cash payments for inventory for April, May, and June. (Round your final answers to the nearest whole dollar.)
|
D. Accounts Payable
Solutions
Expert Solution
| Solutioin: | |||||||||
| Part 1 --- Inventory Purchase Budget | |||||||||
| Inventory Purchase Budget | |||||||||
| April | May | June | Quarter End | ||||||
| Budgeted cost of goods sold | 77000 | 87000 | 97000 | ||||||
| Plus: Ending balance of inventory (15% of Next month's COGS) | 13050 | 14550 | 15450 | ||||||
| Total needs | 90050 | 101550 | 112450 | ||||||
| Less: Beginning balance of inventory (Ending balance of last month) | 4400 | 13050 | 14550 | ||||||
| Required inventory purchases | 85650 | 88500 | 97900 | 272050 | |||||
| Part 2 – the amount of ending inventory Humboldt will report on the end-of-quarter pro forma balance sheet = Ending Inventory of June month = %15450 (103000*15%) | |||||||||
| Part 3 --- schedule of cash payments for inventory for April, May, and June | |||||||||
| schedule of cash payments for inventory for April, May, and June | |||||||||
| April | May | June | Quarter End | ||||||
| March Accounts Payable | $ 14,900.00 | ||||||||
| April Purchases | $ 55,672.50 | $ 29,977.50 | |||||||
| 85650*65% | 85650*35% | ||||||||
| $ 57,525.00 | $ 30,975.00 | ||||||||
| 88500*65% | 88500*35% | ||||||||
| June Purchases | $ 63,635.00 | ||||||||
| 97900*65% | |||||||||
| Total cash payments for Inventory purchases | $ 70,572.50 | $ 87,502.50 | $ 94,610.00 | $ 99,000.00 | |||||
| Part 4 --- the balance in accounts payable Humboldt will report on the end-of-quarter pro forma balance sheet = 35% of June purchase inventory = 97900*35% = | $ 34,265.00 | ||||||||
ekkarill92 answered 1 year agoRelated Solutions
Campbell, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget...
Campbell, 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
$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...
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...
Rooney, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget...
Rooney, 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
$64,000
$74,000
$84,000
$90,000
Rooney had a beginning inventory balance of $3,100 on April 1
and a beginning balance in accounts payable of $14,700. The company
desires to maintain an ending inventory balance equal to 15 percent
of the next period’s cost of goods sold. Rooney makes all purchases...
Baird, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget...
Baird, 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
$69,000
$79,000
$89,000
$95,000
Baird had a beginning inventory balance of $4,400 on April 1 and
a beginning balance in accounts payable of $15,200. The company
desires to maintain an ending inventory balance equal to 20 percent
of the next period’s cost of goods sold. Baird makes all purchases...
From the following details provided by Barry, Inc., prepare the cost of goods sold budget for...
From the following details provided by Barry, Inc., prepare the
cost of goods sold budget for the year (complete the below
table).
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
$250
First
Second
Third
Fourth
Quarter
Quarter
Quarter
Quarter
Units expected to be
sold:
15,000
18,000
21,000
24,000
Barry, Inc. expects...
1. To adjust a company’s LIFO cost of goods sold to FIFO cost of goods sold...
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
reserve...
Aiello, Inc. had the following inventory in fiscal 2016. Compute the company’s cost of goods sold...
Aiello, Inc. had the following
inventory in fiscal 2016. Compute the company’s cost of goods sold
for fiscal 2016 assuming the company used a) FIFO and b) LIFO
methods of accounting for inventory:
Beginning Inventory, January 1, 2016:
130 units @ $15.00
Purchase 200 units @ $18.00
Purchase 50 units @ $13.50
Purchase 110 units @ $15.75
Ending Inventory, December 31, 2016:
120 units
Cost of Goods Sold Budget The controller of MingWare Ceramics Inc. wishes to prepare a cost...
Cost of Goods Sold Budget
The controller of MingWare Ceramics Inc. wishes to prepare a
cost of goods sold budget for September. The controller assembled
the following information for constructing the cost of goods sold
budget:
Direct materials:
Enamel
Paint
Porcelain
Total
Total direct materials purchases budgeted for September
$37,470
$7,870
$146,130
$191,470
Estimated inventory, September 1
2,380
5,710
9,520
17,610
Desired inventory, September 30
2,670
2,430
6,410
11,510
Direct labor cost:
Kiln Department
Decorating Department
Total
Total direct labor...
Cost of goods sold budget Pasadena Candle Inc. budgeted production of 785,000 candles for the year....
Cost of goods sold budget
Pasadena Candle Inc. budgeted production of 785,000 candles for
the year. Each candle requires molding. Assume that six minutes are
required to mold each candle. If molding labor costs $18 per hour,
determine the direct labor cost budget for the year. Wax is
required to produce a candle. Assume 487,125 pounds of material
will be purchased during the year. If candle wax costs $1.24 per
pound, determine the direct materials purchases for the year.
Prepare...
The budget director for Campbell Cleaning Services prepared the following list of expected selling and administrative...
The budget director for Campbell Cleaning Services prepared the
following list of expected selling and administrative expenses. All
expenses requiring cash payments are paid for in the month incurred
except salary expense and insurance. Salary is paid in the month
following the month in which it is incurred. The insurance premium
for six months is paid on October 1. October is the first month of
operations; accordingly, there are no beginning account
balances.
Complete the schedule of cash payments for...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- While technology is a great tool it should not be the absolute answer when it comes...
- Beginning with the Weizsäcker semi-empirical mass formula, show that the minimum in a mass parabola occurs...
- A. Answer the following questions: Describe the two general roles of an operating system and elaborate...
- QUESTION 1 If the metallic ball is launched at an angle of 25° above the horizontal...
- i need the solution with comsol Consider a large plane wall of thickness L 5 0.4...
- Stem cells have the potential to treat many diseases such as diabetes and Parkinson’s. These diseases...
- Walmart entered in some countries through acquisitions and in some countries through greenfield investment. What entry...
ADVERTISEMENT