Jaydip Spencer Company sells lamps and other lighting fixtures. The purchasing departmentmanager prepared the following inventory purchases budget. Spencer's policy is tomaintain an ending inventory balance equal to 15 percent of the following month's costof goods sold. April's budgeted cost of goods sold is $81,000.Requireda. Complete the inventory purchases budget by filling in the missing amounts.Inventory Purchases BudgetBudgeted cost of goods soldPlus: Desired ending inventoryInventory neededLess: Beginning inventoryRequired purchases (on account)Cost of goods soldJanuary February March$$$52,000 56,000 62,0008,400Ending inventory60,4007,800$b. Determine the amount of cost of goods sold the company will report on its firstquarter pro forma income statement.52,600c. Determine the amount of ending inventory the company will report on its pro formabalance sheet at the end of the first quarter.

The inventory purchases budget is prepared to estimate the cost of inventory to be purchased during…

Spencer Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Spencer's policy is to maintain an ending inventory balance equal to 15 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $81,000. Required a. Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget

Spencer Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Spencer's policy is to maintain an ending inventory balance equal to 15 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $81,000. Required a. Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget

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 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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