Solution-Prepare a merchandise purchases budget

Prepare a merchandise purchases budget

Assignment Help Cost Accounting

Reference no: EM13906486

H20 Sports Company is a merchandiser of three different products. The company's March 31 inventories are water skis, 40,000 units; tow ropes, 90,000 units; and life jackets, 150,000 units. Management believes that excessive inventories have accumulated for all three products. As a result, a new policy dictates that ending inventory in any month should equal 10% of the expected unit sales for the following month. Expected sales in units for April, May, June, and July follow.

822_267-B-C-A-B (756).png

Required:

1. Prepare a merchandise purchases budget (in units) for each product for each of the months of April, May, and June. Analysis Component:

2. The purchases budgets in part 1 should reflect fewer purchases of all three products in April com pared to those in May and June. What factor caused fewer purchases to be planned? Suggest business conditions that would cause this factor to both occur and affect the company as ithas.

Reference no: EM13906486

Questions Cloud

Fashion pro currently manufacture : Fashion Pro currently manufacture their novelty t-shirts for a contribution margin of 71%. With a sales revenue of $748,992, their fixed costs require 42% of their sales. They have signed with a new company that can produce their shirts, increasing t..

The systematic collection and analysis of publicly : The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment

How is kyles gain computed if she sells the stock : Mr. Kyle owns stock in a local publicly traded company. If Kyle is right and the stock price increases in the future, how is his sister's gain computed if she sells the stock?

The tricomponent attribute model : 1)Explain your attitude toward your college/university based on the tricomponent attribute model. Be sure to isolate the cognitive, affective, and conative elements

Prepare a merchandise purchases budget : H20 Sports Company is a merchandiser of three different products.

Describe stringbuffer class in java : Describe StringBuffer class in java. List all the functions relevant to it and explain any five of them.

How do the tax laws ensure that taxpayers recognize sale : How do the tax laws ensure that taxpayers recognize all the gain they realize on an installment sale? How is depreciation recapture treated in an installment sale

Typically free or inexpensive : Question 1.1. (TCO 6) _______ data are those that are owned by someone else, typically free or inexpensive, that have potentially unknown quality. Secondary Primary

How would the necessary change affect the tax consequences : What could the parties do to equalize the value exchanged but still allow the exchange to qualify as a like-kind exchange? How would the necessary change affect the tax consequences of the transaction?

User Account

All Pages

Prepare a merchandise purchases budget

Reference no: EM13906486

Reference no: EM13906486

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT