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3.Wanlaya Corp has a desired ending inventory level of 40% of next months estimated sales. In turn, their cost of goods sold is 60% , and their forecasted sales for the months for March, April, May, June, July, and August are as follows : $600,000, $700,000, $800,000, $750,000,  $900,000, and $850,000 respectively. Purchases for the months of February and March were $350,000             and $400,000 respectively and their purchases are paid as follows: 60% during the month of the purchase, 40% in the next month.   Required: Prepare purchases and disbursement for purchases budgets for the months of April, May, and June

3.Wanlaya Corp has a desired ending inventory level of 40% of next months estimated sales. In turn, their cost of goods sold is 60% , and their forecasted sales for the months for March, April, May, June, July, and August are as follows : $600,000, $700,000, $800,000, $750,000,  $900,000, and $850,000 respectively. Purchases for the months of February and March were $350,000             and $400,000 respectively and their purchases are paid as follows: 60% during the month of the purchase, 40% in the next month.   Required: Prepare purchases and disbursement for purchases budgets for the months of April, May, and June

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 2CMA
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3.Wanlaya Corp has a desired ending inventory level of 40% of next months estimated sales. In turn, their cost of goods sold is 60% , and their forecasted sales for the months for March, April, May, June, July, and August are as follows : $600,000, $700,000, $800,000, $750,000,  $900,000, and $850,000 respectively.

Purchases for the months of February and March were $350,000             and $400,000 respectively and their purchases are paid as follows: 60% during the month of the purchase, 40% in the next month.

 

Required: Prepare purchases and disbursement for purchases budgets for the months of April, May, and June

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