Homework Answers
Solutions:
1. June Sales = 206500
Selling price = 2065000/35 = 5900 units
Cost of Goods Sold (June) = 23600
Cost per unit = 23600/5900 = $4
2.
| May | June | July | |
| Sales | 4000 | 5900 | 3730 |
| Ending Inventory | 2950 | 1865 | 2365 |
| Beginning Inventory | 2000 | 2950 | 1865 |
| Purchases | 4950 | 4815 | 4230 |
| Cost | $4.00 | $4.00 | $4.00 |
Sales = (Sales Revenue / Selling Price per unit)
Ending Inventory for the current month = Sales of the following month / 2
Begining Inventory = Ending Inventory of Previous Month
Purchases = Sales +Ending Inventory - Opening Inventory
3.
| May | June | July | |
| Purchases | $19,800.00 | $19,260.00 | $16,920.00 |
4.
| % Collected In April | 49.00% |
| % Collected in May | 40.00% |
| % Collected in Jun | 7.00% |
| % Uncollectible | 4.00% |
| Total | 100.00% |
April = 24990/51000
May = 20400/51000
June = 3570/51000
Uncollectible = 2040/51000
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