Naftel company sells lamps and other lighting fixtures the

Reference no: EM13599468

Naftel Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Naftel's policy is to maintain and ending inventory balance equal to 10 percent of the following month's costs of goods sold. April's budgeted cost of good sold is $75,000.

Jan. Feb. Mar.
Budgeted cost of goods sold $50,000 $54,000 $60,000
Plus: Desired ending inventory $5,400 ? ?
Inventory Needed 55,400 ? ?
Less: Beginning Inventory 5,000 ? ?
Required purchases (on account) 50,400 ? ?

Required:

A. Complete the inventory purchases budget by filling in the missing amounts.
B. Determine the amount of cost of goods sold the company will report on its pro forma income statement.
C. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter

Reference no: EM13599468

Questions Cloud

There are two different restaurant chains that you have : there are two different restaurant chains that you have identified as potential investment opportunities. you are

During its fiscal year a pension trust fund buys 1000 : during its fiscal year a pension trust fund buys 1000 shares of stock for which it pays 33000. at year end the stock

Will the managers incentives to replace the metal press : your firm uses return on assets roa to evaluate investment centers and is considering changing the valuation basis of

Assume a pension plans actuarially-computed liabilities : assume a pension plans actuarially-computed liabilities are greater than the actuarial value of the assets. how does

Naftel company sells lamps and other lighting fixtures the : naftel company sells lamps and other lighting fixtures. the purchasing department manager prepared the following

The beneficiaries of private purpose trust funds are : what is the distinction between private purpose trust funds and permanent funds?a. private purpose trust funds account

Poole corporation has collected the following information : poole corporation has collected the following information after its first year of sales. net sales were 1706800 on

The existing transfer price has been set at 40 per pump : u.s. pump is a multidivisional firm that manufactures and installs chemical piping and pump systems. the valve division

Securities held by an investment trust fund and carried on : securities held by an investment trust fund and carried on the books at 100000 are sold for 110000. on receiving the

User Account

All Pages