1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
otez555 [7]
2 years ago
13

Peabody, Inc., sells fireworks. The company’s marketing director developed the following cost of goods sold budget for April, Ma

y, June, and July. April May June July Budgeted cost of goods sold $79,000 $89,000 $99,000 $105,000 Peabody had a beginning inventory balance of $2,700 on April 1 and a beginning balance in accounts payable of $15,000. The company desires to maintain an ending inventory balance equal to 20 percent of the next period’s cost of goods sold. Peabody makes all purchases on account. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Peabody 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 Peabody will report on the end-of-quarter pro forma balance sheet. This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Visit question mapQuestion 7 of 7 Total7 of 7 Prev
Business
1 answer:
Viktor [21]2 years ago
5 0

Answer:

Peabody, Inc.

a. Inventory Purchase Budget:

                                                         April        May           June    

Budgeted cost of goods sold     $79,000   $89,000   $99,000

Add Ending Inventory                    17,800       19,800      21,000

Cost of Goods Available 4 Sale $96,800     118,800     120,000

Less Beginning Inventory              2,700       17,800        19,80

Purchases                                   $94,100   $101,000   $100,200

b. The amount of Ending Inventory that Peabody will report on the end-of-quarter proforma balance sheet is:

$21,000

c. A Schedule of Cash Payments for Inventory:

                                                       April        May           June  

70% in month of purchase        65,870       70,700        70,140

 30% in the month following    15,000       28,230       30,300

Total payment                         $80,870     $98,930   $100,440

d. Balance of the Accounts Payable is:

$30,060

Explanation:

a) Data and Calculations:

1. Cost of Goods Sold Budget:

                                                         April        May           June          July

Budgeted cost of goods sold     $79,000   $89,000   $99,000   $105,000

Add Ending Inventory                    17,800       19,800      21,000

Cost of Goods Available 4 Sale $96,800     118,800     120,000

Less Beginning Inventory              2,700       17,800        19,800      21,000

Purchases                                   $94,100   $101,000   $100,200

Accounts Payable

Beginning balance                    $15,000    $28,230    $30,300

Purchases                                  $94,100   $101,000   $100,200    

Less payment:

 70% in month of purchase      65,870       70,700        70,140

 30% in the month following    15,000       28,230       30,300

Ending balance                       $28,230     $30,300    $30,060

You might be interested in
Which of the following indicates that the functional currency of a foreign subsidiary is the US dollar? Group of answer choices
andrey2020 [161]

Answer:

C) Sales markets of the foreign entity are primarily in foreign countries.

Explanation:

The US dollar is the most commonly used currency in the world, and most of foreign trade is carried out using the US dollar. If the foreign entity sells most of its production overseas (exports) then they will use the US dollar as their functional currency since all their exports will be valued in US dollars.

6 0
3 years ago
This chapter states that most economists would probably maintain that new technologies are the single most important source of p
maks197457 [2]

Answer:

the correct answer is c)Poor countries do not benefit from new scientific knowledge to the same degree that rich countries do, since they lack the resources required to apply the knowledge widely in a beneficial way.

Explanation:

although novel technologies enable economies to be more productive and achieve greater potentials, in poorer countries they lack the necessary infrastructure and human resources to harness the full potential of this technologies. Also, the initial costs of applying these technologies is higher as well.

Because of this, these new technologies do not benefit the poor countries much.

4 0
3 years ago
Sales and purchase-related transactions using perpetual inventory system The following were selected from among the transactions
ioda

Answer:

July 3. Purchased merchandise on account from Hamling Co., list price $85,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $960 added to the invoice.

Dr Merchandise inventory 63,435

    Cr Accounts payable 63,435

July 5. Purchased merchandise on account from Kester Co., $47,550, terms FOB destination, 2/10, n/30.

Dr Merchandise inventory 46,599

    Cr Accounts payable 46,599

July 6. Sold merchandise on account to Parsley Co., $16,680, terms n/15. The cost of the goods sold was $9,440.

Dr Accounts receivable 16,680

    Cr Sales revenue 16,680

Dr Cost of goods sold 9,440

    Cr Merchandise inventory 9,440

July 7. Returned merchandise with an invoice amount of $13,500 purchased on July 5 from Kester Co.

Dr Accounts payable 13,230

    Cr Merchandise inventory 13,230

July 13. Paid Hamling Co. on account for purchase of July 3.

Dr Accounts payable 63,435

    Cr Cash 63,435

July 15. Paid Kester Co. on account for purchase of July 5, less return of July 7.

Dr Accounts payable 33,369

    Cr Cash 33,369

July 21. Received cash on account from sale of July 6 to Parsley Co.

Dr Cash 16,680

    Cr Accounts receivable 16,680

July 21. Sold merchandise on MasterCard, $212,670. The cost of the goods sold was $144,350.

Dr Cash (assuming MasterCard pays immediately) 212,670

    Cr Sales revenue 212,670

Dr MasterCard fee expense 3,510

    Cr MasterCard fee payable 3,510

Dr Cost of goods sold 144,350

    Cr Merchandise inventory 144,350

I recorded the transaction this way because on July 31, a payment to MasterCard is recorded. Generally the transaction should have been recorded differently since MasterCard withholds its fee automatically, you do not pay it.

Dr Cash (assuming MasterCard pays immediately) 209,160

Dr MasterCard fee expense 3,510

    Cr Sales revenue 212,670

 

July 22. Sold merchandise on account to Tabor Co., $60,200, terms 2/10, n/30. The cost of the goods sold was $33,820.

Dr Accounts receivable 58,996

    Cr Sales revenue 58,996

Dr Cost of goods sold 33,820

    Cr Merchandise inventory 33,820

July 23. Sold merchandise for cash, $38,610. The cost of the goods sold was $22,180.

Dr Cash 38,610

    Cr Sales revenue 38,610

Dr Cost of goods sold 22,180

    Cr Merchandise inventory 22,180

July 28. Paid Parsley Co. a cash refund of $6,070 for returned merchandise from sale of July 6.  The cost of the returned merchandise was $3,630.

Dr Sales revenue 6,070

    Cr Cash 6,070

Dr Merchandise inventory 3,630

    Cr Cost of goods sold 3,630

July 31.  Paid MasterCard service fee of $3,510.

Dr MasterCard fee payable 3,510

    Cr Cash 3,510

7 0
3 years ago
Isabella was hit by a car while she was walking on the road and sustained minor injuries. She filed a case against the car drive
Y_Kistochka [10]

Answer:

B) Individual differences in perception

Explanation:

We all perceive things differently than other people, or in other words, we all see thing differently than other people. Depending on our mood and where we actually are, we  perceive things differently. We also have the tendency to fill in blanks with some preconceived ideas, e.g. a person that suffered a prior accident will immediately imagine an action sequence resembling their own experience and will combine it with what they actually saw.

8 0
3 years ago
A company with a completely fixed cost structure will have operating leverage of 1.a. Trueb. False
olganol [36]

Answer:

False. This is because 1 is an odd number and that it is too low in value.

5 0
3 years ago
Other questions:
  • Which list is the best way to highlight relevant items in the "Activities and Award" category of the résumé? a. Second Place, Ju
    10·1 answer
  • Your company has recently requested that you travel to Dhaka, Bangladesh, to work on negotiations for a new factory to be locate
    11·1 answer
  • Which factor most directly affects a furniture company's supply?
    14·1 answer
  • Approximately __________ of trades involving shares issued by firms listed on the New York Stock Exchange actually take place on
    6·1 answer
  • What factors can lead to the development of mixed economie?
    13·1 answer
  • Mariposa, a young office manager, is trying to exchange text messages with her supervisor, Bill. Although Bill has been the gene
    15·1 answer
  • Inflation occurs when the money supply in a country increases faster than output increases. True or False
    13·1 answer
  • Materials from a source text without property citing the source is an example of plagiarism -(drivers Ed).
    7·2 answers
  • Gary, Peter, and Chris own a firm as partners. Gary has a capital balance ofâ $22,000; Peter a capital balance ofâ $42,000; and
    13·1 answer
  • On December 15, Carboy, Inc., borrows $120,000 cash from Third National Bank at 9 percent annual interest. The note is due in 45
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!