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Jordan, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Required April $ 65,000 Budgeted cost of goods sold Jordan had a beginning inventory balance of $4,200 on April 1 and a beginning balance in accounts payable of $14,300. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Jordan makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the month following purchase. a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Jordan will report on the end-of-quarter pro forma balance sheet. Inventory needed May $ 75,000 c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Jordan will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April Budgeted cost of goods sold Required purchases (on account) S June $ 85,000 May 65,000 $ 75,000 65,000 < Required A 75,000 June $ $ 85,000 July $ 91,000 85,000 $ 65,000 $ 75,000 $85.000 Required B >

Jordan, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Required April $ 65,000 Budgeted cost of goods sold Jordan had a beginning inventory balance of $4,200 on April 1 and a beginning balance in accounts payable of $14,300. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Jordan makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the month following purchase. a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Jordan will report on the end-of-quarter pro forma balance sheet. Inventory needed May $ 75,000 c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Jordan will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April Budgeted cost of goods sold Required purchases (on account) S June $ 85,000 May 65,000 $ 75,000 65,000 < Required A 75,000 June $ $ 85,000 July $ 91,000 85,000 $ 65,000 $ 75,000 $85.000 Required B >

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
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Jordan, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Required A Required B Required C Required D April $ 65,000 Budgeted cost of goods sold Jordan had a beginning inventory balance of $4,200 on April 1 and a beginning balance in accounts payable of $14,300. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Jordan makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Jordan will report on the end-of-quarter pro forma balance sheet. c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Jordan will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Inventory Purchases Budget Budgeted cost of goods sold Prepare an inventory purchases budget for April, May, and June. April Inventory needed Required purchases (on account) $ May $ 75,000 65,000 $ 65,000 June $ 85,000 May June 75,000 $ 85,000 75,000 85,000 $ 65,000 $ 75,000 $ 85,000 < Required A July $ 91,000 Required B >
Transcribed Image Text:Jordan, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Required A Required B Required C Required D April $ 65,000 Budgeted cost of goods sold Jordan had a beginning inventory balance of $4,200 on April 1 and a beginning balance in accounts payable of $14,300. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Jordan makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Jordan will report on the end-of-quarter pro forma balance sheet. c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Jordan will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Inventory Purchases Budget Budgeted cost of goods sold Prepare an inventory purchases budget for April, May, and June. April Inventory needed Required purchases (on account) $ May $ 75,000 65,000 $ 65,000 June $ 85,000 May June 75,000 $ 85,000 75,000 85,000 $ 65,000 $ 75,000 $ 85,000 < Required A July $ 91,000 Required B >
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