Homework Answers
| Ans. | GRAND STORES | |||
| Merchandise Purchase Budget | ||||
| For the Month Ending June 30, 2017 | ||||
| Particulars | June | |||
| Cost of goods sold | $380,475 | |||
| Add: Desired ending inventory | $136,980 | |||
| Total requirements | $517,455 | |||
| Less: Beginning inventory | ($114,143) | |||
| Cost of merchandise purchase | $403,312 | |||
| *Calculations of cost of goods sold: | ||||
| June | July | |||
| Cost of goods sold (sales * 75%) | $507,300 * 75% | $608,800 * 75% | ||
| $380,475 | $456,600 | |||
| *Ending inventory = 30% of next month's cost of goods sold | ||||
| May = $380,475 * 30% | $114,143 | (rounded) | ||
| June = $456,600 * 30% | $136,980 | |||
| *Beginning inventory of June = Ending inventory of May = $114,143. | ||||
Add Answer to:
1. 2. 3. 4. Expected sales: June $507,300, July $608,800. Cost of goods sold is expected...
Exercise 21-20 (Part Level Submission) In May 2017, the budget committee of Grand Stores assembles the...
Exercise 21-20 (Part Level Submission) In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $501,000, July $607,300. 2. Cost of goods sold is expected to be 75% of sales. 3. Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold. 4. The beginning inventory at June 1 will be the desired amount. (a) Compute the budgeted...
In May 2017, the budget committee of Grand Stores assembles the following data in preparation of...
In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $507,300, July $608,800. 2. Cost of goods sold is expected to be 75% of sales. 3. Desired ending merchandise inventory is 30% of the following (next) month’s cost of goods sold. 4. The beginning inventory at June 1 will be the desired amount. Collapse question part (a) Compute the budgeted merchandise purchases...
Good morning, I am having an issue figuring out the second part of my assignment this...
Good morning,
I am having an issue figuring out the second part of my
assignment this week. Any help is appreciated. Thank you in
advance.
Exercise 21-20 (Part Level Submission) In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $517,600, July $608,600. 2. Cost of goods sold is expected to be 75% of sales. 3. Desired ending merchandise inventory is 30%...
In May 2020, the budget committee of Johnson Stores assembles the following data in preparation of...
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1: Prepare a sales budget, including a schedule of expected cash collections. 2: prepare a merchandise...
1: Prepare a sales budget, including a schedule of expected
cash collections.
2: prepare a merchandise purchase budget, including a schedule
of expected cash disbursements for merchandise, and a selling and
administrative budget.
3: prepare a cash budget.
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Widden Company, which sells electric razors, had $360,000 of cost of goods sold during the month...
Widden Company, which sells
electric razors, had $360,000 of cost of goods sold during the
month of June. The company projects a 7 percent increase in cost of
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$23,000, and the desired ending inventory balance for July is
$24,000. Widden pays cash to settle 75 percent of its purchases on
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The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:...
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Swenson, Inc., sells tire rims. Its sales budget and inventory, purchases, and cost of goods sold...
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Exercise 21-20 (Part Level Submission) In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $501,000, July $607,300. 2. Cost of goods sold is expected to be 75% of sales. 3. Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold. 4. The beginning inventory at June 1 will be the desired amount. (a) Compute the budgeted...
Good morning,
I am having an issue figuring out the second part of my
assignment this week. Any help is appreciated. Thank you in
advance.
Exercise 21-20 (Part Level Submission) In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $517,600, July $608,600. 2. Cost of goods sold is expected to be 75% of sales. 3. Desired ending merchandise inventory is 30%...
1: Prepare a sales budget, including a schedule of expected
cash collections.
2: prepare a merchandise purchase budget, including a schedule
of expected cash disbursements for merchandise, and a selling and
administrative budget.
3: prepare a cash budget.
MOST LIKELY NUMBERS AND ASSUMPTIONS SALES MANAGER PRIVATE INFORMATION October Most likely sales 600,000 910,000 475,000 385,000 PURCHASING MANAGER PRIVATE INFORMATION Most likely cost of merchandise as a % of sales Desired ending inventory as a percentage of next month's cost of...
Required: 1. Prepare a schedule of expected cash collections for July August, and September 2-a. Prepare a merchandise purchases budget for July August, and September. Also compute total merchandise purchases for the quarter ended September 30. 2.b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September 3. Prepare an income statement that computes net operating income for the quarter ended September 30, 4. Prepare a balance sheet as of September 30, Complete this question...
Widden Company, which sells
electric razors, had $360,000 of cost of goods sold during the
month of June. The company projects a 7 percent increase in cost of
goods sold during July. The inventory balance as of June 30 is
$23,000, and the desired ending inventory balance for July is
$24,000. Widden pays cash to settle 75 percent of its purchases on
account during the month of purchase and pays the remaining 25
percent in the month following the purchase....
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings $ 8,400 $ 23,600 $ 45,000 $ 123,600 $ 26,925 $ 150,000 $ 23,675 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) Apr 11 May June July $ 59,000 $ 75,000 $ 80.000 $ 105,000 $ 56,000...
Swenson, Inc., sells tire rims. Its sales budget and inventory,
purchases, and cost of goods sold budget for the nine months ended
September 30, 2016, follow:
Selling and Administrative Expense Budget Nine Months Ended September 30, 2016 Quarter Quarter Quarter Ended Ended Ended Nine-month March 31 June 30 September 30 Total Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses Total selling and administrative expenses Nine Months Ended September 30, 2016 Quarter Ended Nine-Month March 31 June 30 September...
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