Prepare budget schedules for June

Assignment Help Managerial Accounting
Reference no: EM133010536

Problem - Leimersheim GmbH has adopted the following policies regarding merchandise purchases and inventory. At the end of any month, the inventory should be €15,000 plus 90% of the cost of goods to be sold during the following month. The cost of merchandise sold averages 60% of sales. Purchase terms are generally net, 30 days. A given month's purchases are paid as follows: 20% during that month and 80% during the following month. Purchases in May had been €150,000 and the inventory on May 31 was higher than planned at €230,000. The manager was upset because the inventory was too high. Sales are expected to be: June, €300,000; July, €290,000; August, €340,000; and September, €400,000.

Required -

1. Compute the amount by which the inventory on May 31 exceeded the company's policies.

2. Prepare budget schedules for June, July, and August for purchases and for disbursements for purchases.

Reference no: EM133010536

Questions Cloud

What is the probability that person has an american express : Suppose a person on the list is known to have a MasterCard. What is the probability that person also has an American Express card?
Prepare an estimate of the cost of work-in-process : Singh & Sons is in the process of negotiating a settlement with its insurance company. Prepare an estimate of the cost of work-in-process
What annual total inventory management of cheese inventory : Cheeseburger and Taco Company purchases 17,397 boxes of cheese each year. What is the annual total inventory management costs of cheese inventory.
What is yield to maturity on bond if dan purchases bond : The bond is currently selling for $981. The par value of the bond is $1000. What is the yield to maturity on the bond if Dan purchases the bond today?
Prepare budget schedules for June : Sales are expected to be: June, €300,000; July, €290,000; August, €340,000; and September, €400,000. Prepare budget schedules for June
What was net operating profit after taxes : Depreciation expense= 3450;interst expense = 790. The tax rate for last year was 40%. What was net operating profit after taxes
Questionnaire to identify temperament type : Considering that these choices represent management alternatives, what set of human resource imperatives are important to each of the three project organization
What is most that will be willing to pay for common stock : You are considering the purchase of Crown Bakery, Inc. What is the most that you will be willing to pay for the common stock if you were to purchase it today?
UX, CX and Ethical innovation case study : How Design Thinking principles were applied in the development of your proposed innovation - Alignment to the customer journey for your nominated personas

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Make a statement of cash flow will be necessary to

6000 in order to adjust the companies net income to a cash basis using the direct method on the statement of cash flow's it will be necessary to

  What is an rfp and what are the components

Identify and select a vendor who can provide the required equipment and services. What is an RFP? What are the components?

  State the total transaction price with calculations

Absco is quite uncertain how quickly it can manufacture these jeans. State the total transaction price with calculations in one page

  What is the intercept for margolo company

What is the intercept? Margolo Company makes cross-country skis. The company controller believes that employee benefits is best represented

  Prepare two contribution statements one showing the results

Prepare two contribution statements, one showing the results of operations if these changes are made. Would you recommend that the company do the sales manager

  What additional costs will be charged to customer

The firm had two consultations with this client and required 130 administrative labor hours. What additional costs will be charged to this customer?

  What the exchange results in?

The new equipment has a market value of $ $306,000 and the business pays $ $58,000 cash. Assume the exchange has commercial substance. The exchange results in?

  Find which of the items is relevant to buff decision

Buff Corp. is considering replacing an old machine with a new machine. Which of the following items is NOT relevant to Buff's decision?

  What is cost formula for selling and administrative expense

What The cost formula for selling and administrative expenses with "X" equal to the number of books sold is? An income statement for Sam's Bookstore

  Determine the overall break-even point for the company

Determine the overall break-even point for the company in total sales dollars, then determine the breakeven point for each product

  How do determine the amount of total and per-case factory

How do determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles.

  What decision would recommend if were franks accountant

If you were Franks accountant what decision would you recommend? (Hint: consider after tax cost of the loan or cash flow in the client's bank account)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd