Part A | Nov | Dec | Jan |
Sales | 4,50,000 | 4,30,000 | 4,20,000 |
COGS = (Sales * 75% ) given in question | 3,37,500 | 3,22,500 | 3,15,000 |
Profit | 1,12,500 | 1,07,500 | 1,05,000 |
Basic formula for COGS | Nov | Dec | Jan |
Opening inventory | 2,19,375 | 2,09,625 | 2,04,750 |
Purchase | 3,27,750 | 3,17,625 | |
Closing Inventory | 2,09,625 | 2,04,750 | |
COGS ( from part A) | 3,37,500 | 3,22,500 | 3,15,000 |
1 | COGS is taken from PART A |
2 | Opening Inventory for Nov is already given in Balance Sheet |
3 | company's closing Inventory is 65% of COGS of Next Month's ( given in Question ). It means Oct closing is based on Nov COGS * 65% ( 3,37,500 * 65% = 2,19,375 ) and closing will become Next month opening Inventory |
4 | After that we will take Balancing figure for Purchase of Nov - ( 3,37,500+2,09,625-2,19,375 ) = 3,27,750 |
5 | According to Question payment for Merchandise is made following month of purchase , so accordingly payment in Dec will be made for Nov Purchases i.e. 3,27,750 |
So Accordingly Final Answer is Option C - 3,27,750 |
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $450,000 for November, $430,000 for December, and $420,000 for January. Collections are expected to be 40% in the month of sale and 60% in the month following the sale. The cost of goods sold is 75% of sales. The company would like to maintain ending merchandise inventories equal to 65% of the next month's cost of goods sold. Payment for...
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Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $350,000 for November, $330,000 for December, and $320,000 for January. Collections are expected to be 45% in the month of sale and 55% in the month following the sale. The cost of goods sold is 75% of sales. The company would like to maintain ending merchandise inventories equal to 80% of the next month's cost of goods sold. Payment for...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $260,000 for November, $240,000 for December, and $230,000 for January. Collections are expected to be 55% in the month of sale and 45% in the month following the sale. The cost of goods sold is 80% of sales. The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $400,000 for November, $380,000 for December, and $370,000 for January. Collections are expected to be 45% in the month of sale and 55% in the month following the sale. The cost of goods sold is 75% of sales. The company would like maintain ending merchandise inventories equal to 65% of the next month's cost of goods sold. Payment for merchandise...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $370,000 for November, $350,000 for December, and $340,000 for January. . Collections are expected to be 55% in the month of sale and 45% in the month following the sale . The cost of goods sold is 70% of sales · The company would like maintain ending merchandise inventories equal to 60% of the next month's cost of goods sold....
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $250,000 for November, $230,000 for December, and $220,000 for January. Collections are expected to be 60% in the month of sale and 40% in the month following the sale. The cost of goods sold is 75% of sales. The company would like to maintain ending merchandise inventories equal to 65% of the next month's cost of goods sold. Payment for...
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