Campbell, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April,May, June, and JulyBudgeted cost of goods soldMayJuneApril$ 64,000$ 74,000$ 84,000July$ 90,000Campbell had a beginning inventory balance of $4,300 on April 1 and a beginning balance in accounts payable of $15,600. Thecompany desires to maintain an ending inventory balance equal to 10 percent of the next period's cost of goods sold. Campbell makesall purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percentin the month following purchaseRequired:a. Prepare an inventory purchases budget for April, May, and June.b. Determine the amount of ending inventory Campbell 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 Campbell will report on the end-of-quarter pro forma balance sheet

Note: If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…

Answered: Campbell, Incorporated sells fireworks.…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...

See similar textbooks

Similar questions

Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
In April, Holderness Incorporated, a merchandising company, had sales of $286,000, selling expenses of $20,500, and administrative expenses of $31,500. The cost of merchandise purchased during the month was $168,000. The beginning balance in the merchandise inventory account was $40,500 and the ending balance was $54,500 Required: Prepare a traditional format income statement for April. Holderness Incorporated For the month of April Traditional Format Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expense Administrative expense $ 20,500 31,500 5 286.000 154.000 132.000 52.000 $ 80,000 4
Jailbird Company provided the following data about the inventory for the month of January : Units Unit Cost Total Cost January 1 Beginning 16,000 140 2,240,000 5 Purchase 4,000 150 600,000 10 Sales 15,000 15 Purchase 20,000 160 3,200,000 16 Purchase Return 1,000 160 160,000 25 Sales 8,000 26 Sales Return 4,000 31 Purchase 30,000 150 4,500,000 Required: Compute the total cost balances of Ending Inventory and Cost of Goods Sold using: LIFO
Assume that in September, Joplin Designs customers actually return$150,000 of inventory. Using the same cost of goods sold percentage, the companywould make the following entries to record 1) the refunds and 2) cost of items returned.
Jailbird Company provided the following data about the inventory for the month of January : Units Unit Cost Total Cost January 1 Beginning 16,000 140 2,240,000 5 Purchase 4,000 150 600,000 10 Sales 15,000 15 Purchase 20,000 160 3,200,000 16 Purchase Return 1,000 160 160,000 25 Sales 8,000 26 Sales Return 4,000 31 Purchase 30,000 150 4,500,000 Required: Compute the total cost balances of Ending Inventory and Cost of Goods Sold using: Periodic Weighted Average
Jailbird Company provided the following data about the inventory for the month of January : Units Unit Cost Total Cost January 1 Beginning 16,000 140 2,240,000 5 Purchase 4,000 150 600,000 10 Sales 15,000 15 Purchase 20,000 160 3,200,000 16 Purchase Return 1,000 160 160,000 25 Sales 8,000 26 Sales Return 4,000 31 Purchase 30,000 150 4,500,000 Required: Compute the total cost balances of Ending Inventory and Cost of Goods Sold using: Moving Average
Kiwi Ltd. started April with 90 units in inventory costing $16 each. Kiwi Ltd., which uses a perpetual inventory system, had the following inventory transactions in April: Purchases Sales Units Unit Cost Units Selling Price/Unit 4 Purchase 300 18 12 Sale 240 $32 21 Purchase 100 24 29 Sale 165 $35 Instructions Using the FIFO cost formula, calculate the cost of goods sold for the month ended April Show calculations in the table below. Using the average cost formula, calculate the ending inventory at April 30. Show calculations in the table on the next page. Round to two decimals for all calculations. Use the ROUNDED values in your calculations. (a) Perpetual Inventory Record––FIFO PURCHASES COST OF GOODS SOLD INVENTORY ON HAND DA TE…
The records of Sage's Boutique report the following data for the month of April. Sales revenue $107,400 Purchases (at cost) Sales returns 1,900 Purchases (at sales price) Markups 10,300 Purchase returns (at cost) Markup cancellations 1,400 Purchase returns (at sales price) Markdowns 8,600 Beginning Inventory (at cost) Markdown cancellations 2,700 Beginning Inventory (at sales price) Freight on purchases 2,300 Compute the ending inventory by the conventional retail inventory method. Ending inventory using conventional retail inventory method S $44,200 83,000 1,900 3,000 22,312 42,300
Use the following information for Problems 32 and 33.Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with 2,000 units of inventory carried at LIFO cost of $20 per unit. During the first quarter, it purchased 8,000 units at an average cost of $40 per unit and sold 9,500 units at $60 per unit.Assume the company expects to replace the units of beginning inventory sold in April at a cost of $45 per unit and expects inventory at year-end to be between 2,100 and 2,500 units. What amount of cost of goods sold should be recorded for the quarter ended March 31?a. $335,000b. $350,000c. $380,000d. $387,500
Digital Enterprises is a merchandising company. All inventory sales and purchases are made on account. Here are data regarding Digital's budget for the month of May: Cash collections from customers Cash paid to suppliers of merchandise inventory Accounts receivable from customer sales May $135,000 $109,000 May 1 $16,000 $18,500 May 31 $22,000 $11,000 Accounts payable from inventory purchases Assume the balance of the merchandise inventory account does not change during the month of May, and that selling and administrative expenses are budgeted at $26,000 for the month of May. What is Digital's budgeted operating income for the month of May? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00). 2017 2009 200 100 500
Use the following information for the next two questions: ABC Co. bills its branch for merchandise at 140% of cost. At the end of its first month, the branch submitted the following data: Merchandise from home office (at billed price) 98,000 Merchandise purchased locally by branch 40,000 Inventory, December 31 of which 7,000 are of local purchase 28,000 Net sales for the month 180,000 How much is the branch’s ending inventory at cost? a. 92,000 b. 20,000 c. 22,000 d. 23,800 How much is the branch’s gross profit in so far as the home office is concerned? a. 70,000 b. 72,000 c. 90,000 d. 92,000
The board of directors of Windsor Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available. Sales Inventory, January 1 Purchases Inventory, December 31 Operating expenses 19,500 units @ 5,800 units @ 5,800 units @ 9,500 units @ 6,900 units @ 8,500 units @ $54 22 24 27 32 ? $216,000 Prepare a condensed income statement for the year on both bases for comparative purposes.

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting

Accounting

ISBN:

9781337272124

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

Financial Accounting

Accounting

ISBN:

9781337272124

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS