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Licemer1 [7]
3 years ago
13

College Logos buys​ logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2 comma 00

9 comma 000 in​ September, $ 2 comma 240 comma 000 in​ October, $ 2 comma 379 comma 000 in​ November, and $ 2 comma 520,000 in December. College Logos sets its prices to earn an average 40​% gross profit on sales revenue. The company does not want inventory to fall below $ 425 comma 000 plus 15​% of the next​ month's cost of goods sold.Required:Prepare a cost of goods​ sold, inventory, and purchases budget for the months of October and November.
Business
1 answer:
Rus_ich [418]3 years ago
3 0

Answer:

College Logos

Cost of goods sold, inventory, and purchases budget for the months of October and November:

                                                           October             November

Sales                                             $ 2,240,000         $ 2,379,000

Cost of goods sold  60%                 1,344,000             1,427,400

Gross profit, 40% of sales               $896,000             $951,600

Inventory Budget:

Ending Inventory                              $626,600              $639,110

Beginning Inventory                         $606,810             $626,600

Purchases Budget:

Ending Inventory                            $626,600             $639,110

Cost of goods sold                         1,344,000            1,427,400

Cost of goods available for sale $1,970,600         $2,066,510

less Beginning Inventory               $606,810           $626,600

Purchases                                    $1,363,790          $1,439,910

Explanation:

a) Data and Calculations:

                       September      October        November        December

Sales             $ 2,009,000   $ 2,240,000  $ 2,379,000  $ 2,520,000

Cost of goods

 sold  60%       1,205,400        1,344,000       1,427,400       1,512,000

Gross profit     $803,600        $896,000       $951,600    $1,008,000

Ending Inventory $606,810   $626,600         $639,110       $651,800

Beginning Inventory               $606,810          $626,600     $639,110

Purchases:

Ending Inventory $606,810      $626,600         $639,110       $651,800

Cost of goods

 sold                   1,205,400       1,344,000       1,427,400       1,512,000

Cost of goods available

for sale             $1,812,210     $1,970,600    $2,066,510    $2,163,800

less Beginning Inventory          $606,810      $626,600        $639,110

Purchases                               $1,363,790     $1,439,910    $1,524,690

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Patti Company owns 80% of the common stock of Shannon, Inc. In the current year, Patti reports sales of
Nikitich [7]

Answer:

$7,604,500

Explanation:

Total cost of goods sold:

= Cost of goods sold of Patti Company + Cost of goods sold of Shannon Inc.

= $7,500,000 + $160,000

= $7,660,000

Consolidated cost of goods sold:

= Total cost of goods sold - Intra-Entity sales added in cost of goods sold of Shannon Inc. + Unrealized profit on ending inventory eliminated by adjusting cost of goods sold

=  $7,660,000 - $60,000 + ($60,000 × 0.25) × 30%

= $7,660,000 - $60,000 + $4,500

= $7,604,500

3 0
3 years ago
The accounting process is correctly sequenced asA) Identifying→recording→communicatingB) Identifying→communicating→recordingC) C
garik1379 [7]

Answer:

The correct answer to the following question is option A) Identifying - Recording - Communicating .

Explanation:

An accounting process can be defined as series of activities which begins with identifying a transaction and ends with books closed. This process is also called accounting cycle because this process is done every financial reporting period. Here the first step would be to identify a transaction, then getting source document of transaction ready, after that classifying the transaction , then recording it by making journal entries, which would then lead to preparation of ledger, trial balance and other financial statements etc.

3 0
3 years ago
On May 25, after the transactions had been posted, Adams discovered that the following entry contains an error. The cash receive
vampirchik [111]

Answer:

With the correcting entry method, the wrongly posted account will transfer the amount that was to be posted elsewhere to the place it was to be posted in. In this case the posting was to be to Accounts Receivable not Service fees so:

Date                   Account Title                                     Debit                  Credit

May 23              Service Fees                                   $1,270

                          Accounts Receivable                                                 $1,270

3 0
2 years ago
What management function is to ensure that all factors of production are available to departments
artcher [175]
Production planning ,production control , quality and cost control and inventory control
5 0
3 years ago
The corporate charter of Luney Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first
kakasveta [241]

Answer:

Luney Corporation is authorized to sell 100000 shares

luney has issued =  70000 shares

luney has shares outstanding 63000

Explanation:

given data

maximum shares of common stock = 100,000

sold shares =  70,000

reacquired = 7,000

solution

we know here 100000 shares are mention in charter of the company

so Luney Corporation is authorized to sell 100000 shares

and  luney has issued =  70000 shares

so here  

we know that

luney has shares outstanding  = 70000 - 7000

luney has shares outstanding 63000

7 0
3 years ago
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