Bins Incorporated uses the periodic inventory system. The following table shows beginning inventory and inventory purchases for 2020: Month Beginning Inventory January February March Totals Sales Units 2,880 3,000 2,800 8,680 Units 2,240 1,960 2,080 2,720 9,000 Purchases Cost per unit $5.00 $7.00 $5.00 $7.00 Totals $11,200 $13,720 $10,400 $19,040 $54,360 Relative to March, the company projects a 5 percent increase in cost of goods sold during April. The desired ending inventory balance for April is $2,400. Romaguera Inc pays cash to settle 60 percent of its purchases on account during the month of purchase and pays the remaining 40 percent in the month following the purchase. The accounts payable balance as of March 31 was $6,800. Required: Based on the FIFO inventory valuation methods answer the following questions. You may round your final answer to the nearest dollar. What is the ending inventory balance at the end of March? $ What is the total cost of goods sold at the end of March? $ What is the amount of purchases budgeted for April? $ What is the amount of cash payments budgeted for inventory purchases in April? $

Bins Incorporated uses the periodic inventory system. The following table shows beginning inventory and inventory purchases for 2020: Month Beginning Inventory January February March Totals Sales Units 2,880 3,000 2,800 8,680 Units 2,240 1,960 2,080 2,720 9,000 Purchases Cost per unit $5.00 $7.00 $5.00 $7.00 Totals $11,200 $13,720 $10,400 $19,040 $54,360 Relative to March, the company projects a 5 percent increase in cost of goods sold during April. The desired ending inventory balance for April is $2,400. Romaguera Inc pays cash to settle 60 percent of its purchases on account during the month of purchase and pays the remaining 40 percent in the month following the purchase. The accounts payable balance as of March 31 was $6,800. Required: Based on the FIFO inventory valuation methods answer the following questions. You may round your final answer to the nearest dollar. What is the ending inventory balance at the end of March? $ What is the total cost of goods sold at the end of March? $ What is the amount of purchases budgeted for April? $ What is the amount of cash payments budgeted for inventory purchases in April? $

Name: Bins Incorporated uses the periodic inventory system. The following t
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Description: Bins Incorporated uses the periodic inventory system. The following table shows beginning inventory and inventory purchases for 2020:MonthBeginning InventoryJanuaryFebruaryMarchTotalsSales UnitsUnits2,2402,8801,9603,0002,0802,800 2,7208,6809,000Purc

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 6E: Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows:...

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