MANAGERIAL ACCOUNT.(LL)W/ACCESS>CUSTOM<
3rd Edition
ISBN: 9781259972089
Author: Whitecotton
Publisher: MCG CUSTOM
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Chapter 8, Problem 20E
To determine
Concept introduction:
The purchase budget is prepared to estimate the amount of purchases made by the company during a particular period. It is calculated by adding cost of goods sold to the closing stock and then subtracting opening stock. The income statement of the company determines the net income or loss for the company during a particular period.
Requirement 1
The merchandise purchase budget for the month of April May and June.
To determine
Concept introduction:
The purchase budget is prepared to estimate the amount of purchases made by the company during a particular period. It is calculated by adding cost of goods sold to the closing stock and then subtracting opening stock. The income statement of the company determines the net income or loss for the company during a particular period.
Requirement 2
The income statement for the month of April May and June.
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Students have asked these similar questions
Brinso Supply Corporation manufactures and sells cotton gauze Expected sales of gauze (in boxes) for upcoming months are as
follows:
June
July
August
September
October
November
December
40,250
34,700
43,150
35,250
38,700
40,600
41,250
Management likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales.
Required:
Prepare the company's production budget for the third quarter of this year.
The following is a schedule of the projected unit sales of Western Company, which manufactures casual wear. Each unit sells for $25. The company began the period with a beginning accounts receivable balance of $10,000. Choose the correct answer from the options provided.
Quarter Year
First Second Third Fourth Year
Budgeted unit sales 1,500 1,300 1,400 1,300 5,500
Percentage of sales collected in the quarter of the sale 75%
Percentage of sales collected in the quarter after the sale 25%
Knowledge Check 01
What is the amount of budgeted sales revenue for the fourth quarter?
multiple choice 1
$32,500
$33,750
$35,000
$37,500
Knowledge Check 02
What is the amount of cash that is expected to be collected during the second quarter as a result of sales made during the first quarter?
multiple choice 2
$8,125
$8,750
$9,375
$28,125
Knowledge Check 03
What is the total amount of expected cash collections for the third quarter?
multiple choice 3
$33,125
$33,750
$34,375
$38,125
The data shown were obtained from the financial records of Italian Exports, Inc., for March:
Estimated Sales
Sales
Purchases
Ending Inventory*
Administrative Salaries
Marketing Expense**
Sales Commissions
Rent Expense
Depreciation Expense
Utilities
Taxes***
*of next month's sales
**of estimated sales
Sales
Cost of Goods Sold
***of income before taxes
Sales are expected to increase each month by 10%.
Prepare a budgeted Income statement. Round your answers to the nearest dollar.
Italian Exports, Inc.
Budgeted Income Statement
For the Month Ending Mar. 31, 2020
Beginning Inventory
Purchases
Cost of Goods Avaliable for Sale
Ending Inventory
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Salaries
Marketing Expenses
Sales Commissions
Rent Expense
Depreciation Expense
$340,000
367,932
294,830
Utilities
Total Operating Expenses
Income From Operations
Income Tax Expense
Net Income
10%
30,340
5%
2%
7,000
900
2,300
15%
to ovembo
Chapter 8 Solutions
MANAGERIAL ACCOUNT.(LL)W/ACCESS>CUSTOM<
Ch. 8 - Briefly describe why budgetary planning is...Ch. 8 - What role do budgets play in the planning and...Ch. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - Prob. 5QCh. 8 - Prob. 6QCh. 8 - What are the advantages and disadvantages of...Ch. 8 - What is budgetary slack and why might it be...Ch. 8 - Briefly explain how each of the following helps to...Ch. 8 - What is the master budget, and what are its...
Ch. 8 - Explain why the sales budget is the starting point...Ch. 8 - Prob. 12QCh. 8 - What are tile components of tile operating...Ch. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - Prob. 16QCh. 8 - Prob. 17QCh. 8 - Prob. 18QCh. 8 - How does the budgeting process differ for a...Ch. 8 - Prob. 20QCh. 8 - Prob. 1MCCh. 8 - Prob. 2MCCh. 8 - Prob. 3MCCh. 8 - Prob. 4MCCh. 8 - Prob. 5MCCh. 8 - Prob. 6MCCh. 8 - Which of the following budgets is affected by the...Ch. 8 - Prob. 8MCCh. 8 - Prob. 9MCCh. 8 - Prob. 10MCCh. 8 - Describing Advantages of Budgetary Planning...Ch. 8 - Classifying Components of Master Budget Classify...Ch. 8 - Prob. 4MECh. 8 - Prob. 5MECh. 8 - Prob. 6MECh. 8 - Prob. 7MECh. 8 - Preparing Selling and Administrative Expense...Ch. 8 - Prob. 9MECh. 8 - Prob. 10MECh. 8 - Prob. 11MECh. 8 - Prob. 1ECh. 8 - Using Terms to Complete Sentences about Budgets...Ch. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Preparing Production, Raw Materials Purchases...Ch. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 1.1GAPCh. 8 - Prob. 1.2GAPCh. 8 - Prob. 1.3GAPCh. 8 - Prob. 1.4GAPCh. 8 - Prob. 1.5GAPCh. 8 - Prob. 1.6GAPCh. 8 - Prob. 1.7GAPCh. 8 - Prob. 2GAPCh. 8 - Prob. 3.1GAPCh. 8 - Prob. 3.2GAPCh. 8 - Prob. 3.3GAPCh. 8 - Prob. 4.1GAPCh. 8 - Prob. 4.2GAPCh. 8 - Preparing Operating Budget Components Wesley Power...Ch. 8 - Prob. 4.4GAPCh. 8 - Prob. 5.1GAPCh. 8 - Prob. 5.2GAPCh. 8 - Preparing Operating Budget Components Refer to the...Ch. 8 - Prob. 6.1GAPCh. 8 - Prob. 6.2GAPCh. 8 - Prob. 6.3GAPCh. 8 - Prob. 6.4GAPCh. 8 - Prob. 6.5GAPCh. 8 - Prob. 1.1GBPCh. 8 - Prob. 1.2GBPCh. 8 - Prob. 1.3GBPCh. 8 - Prob. 1.4GBPCh. 8 - Prob. 1.5GBPCh. 8 - Prob. 1.6GBPCh. 8 - Prob. 1.7GBPCh. 8 - Prob. 2GBPCh. 8 - Prob. 3.1GBPCh. 8 - Prob. 3.2GBPCh. 8 - Prob. 3.3GBPCh. 8 - Prob. 4.1GBPCh. 8 - Prob. 4.2GBPCh. 8 - Prob. 4.3GBPCh. 8 - Prob. 4.4GBPCh. 8 - Prob. 5.1GBPCh. 8 - Prob. 5.2GBPCh. 8 - Prob. 5.3GBPCh. 8 - Prob. 6.1GBPCh. 8 - Prob. 6.2GBPCh. 8 - Prob. 6.3GBPCh. 8 - Prob. 6.4GBPCh. 8 - Prob. 6.5GBP
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