Miles Company, a wholesaler, budgeted the following sales for the indicated months: July €1,840,000 200.000 €2.040,000 Sales on account- Cash sales Total sales June €1,800,000 180,000 €1,980,000 August €1,900,000 260,000 €2.160,000 All merchandise is marked up to sell at its invoice cost plus 20% Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold. 1- What is the cost of goods sold for the month of June? €1,650,000. 2- What is the merchandise purchases for July? €1,730,000.
Miles Company, a wholesaler, budgeted the following sales for the indicated months: July €1,840,000 200.000 €2.040,000 Sales on account- Cash sales Total sales June €1,800,000 180,000 €1,980,000 August €1,900,000 260,000 €2.160,000 All merchandise is marked up to sell at its invoice cost plus 20% Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold. 1- What is the cost of goods sold for the month of June? €1,650,000. 2- What is the merchandise purchases for July? €1,730,000.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Transcribed Image Text:Miles Company, a wholesaler, budgeted the following sales for the indicated months:
July
€1,840,000
200.000
€2.040,000
Sales on account-
Cash sales
Total sales
June
€1,800,000
180,000
€1,980,000
August
€1,900,000
260,000
€2.160,000
All merchandise is marked up to sell at its invoice cost plus 20%. Merchandise inventories at the
beginning of each month are at 30% of that month's projected cost of goods sold.
1- What is the cost of goods sold for the month of June? €1,650,000.
2- What is the merchandise purchases for July? €1,730,000.
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