Goods sold for the following quarter

Assignment Help Accounting Basics

Reference no: EM131094921

Wynne Company has a broad range of products it sells in a four-state area. Sales for the four quarters of 2016 are expected to be $448,000, $789,000, $804,000, and $550,000, for an annual total of $2,591,000. Cost of goods sold averages 60% of sales. Ending inventory for each quarter should be 15% of cost of goods sold for the following quarter. Inventory at January 1 is expected to be $40,000. Required: a. Show calculations for ending inventory, purchases, and cost of goods sold for the first three quarters of 2016. b. Assume that all the information above has come from the President, the Marketing Manager, and the Chief Financial Officer of Wynne. Briefly describe the potential advantages of the top-down budgeting approach in use at this time. What risks, if any, does the company face because of this strategy?

Reference no: EM131094921

Questions Cloud

Collaborative or competitive nature of an organization : How does the role of power influence the collaborative or competitive nature of an organization? Do you think that leadership consciously chooses one over the other? What are the effects of choosing one over the other?

What people do rather than what they say they will do : Analyze how does the bank's finding relates to economists' traditional focus on what people do, rather than what they say they will do.

Trade policy on exchange rate of small open economy : The government of a small open economy wishes to promote trade policies that will result in currency appreciation (increasing the real exchange rate). Would protectionist policies (higher tariffs and more quotas) or freer trade policies (tariff reduc..

Two areas of human resource management : This assessment will allow you the opportunity to choose two areas of Human Resource Management that you are interested in, and conduct an in-depth analysis to address specific components within each area.

Goods sold for the following quarter : Wynne Company has a broad range of products it sells in a four-state area. Sales for the four quarters of 2016 are expected to be $448,000, $789,000, $804,000, and $550,000, for an annual total of $2,591,000.

Question regarding the background scenario : You are a project manager for Advancement Corporation, which specializes in providing quality pharmaceuticals to doctors throughout the United States. The company has over 20,000 employees.

How much zatab will it produce and sell annually : The patent on Zatab expires next month, and dozens of pharmaceutical firms are prepared to enter the market with identical generic versions of Zatab. What price and quantity will result once the patent expires and competition emerges in this marke..

Kweschun company makes one of its components : Kweschun Company makes one of its components at a cost of $13.18 per unit at its current production level of 80,000 units per month. This component is used in the manufacture of several other products which are sold to customers.

What risks do you think the project would face : Once identified, develop a communication and engagement plan for your group of stakeholders. Consider questions such as what communication tools would you use, how often would you communicate, what are the key messages you need to share, have you ..

User Account

All Pages