Solution-Prepare a merchandise purchases budget

Prepare a merchandise purchases budget

Assignment Help Cost Accounting

Reference no: EM13510218

Capp Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:

%u2022	Sales are budgeted at $460,000 for November, $470,000 for December, and $450,000 for January.
%u2022	Collections are expected to be 55% in the month of sale, 42% in the month following the sale, and 3% uncollectible.
%u2022	The cost of goods sold is 60% of sales.
%u2022	The company desires an ending merchandise inventory equal to 35% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
%u2022	The November beginning balance in the accounts receivable account is $81,000.
%u2022	The November beginning balance in the accounts payable account is $268,000.

Required:

Prepare a Schedule of Expected Cash Collections for November and December. (Omit the "$" sign in your response.)

Capp Corporation Schedule of Expected Cash Collections
	November	December
Sales	$	$
Schedule of Expected Cash Collections
Accounts receivable	$
November sales		$
December sales

Total cash collections	$	$

Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Omit the "$" sign in your response.)

Capp Corporation Merchandise Purchases Budget
	November	December
Budgeted cost of goods sold	$	$
(Click to select) Deduct Add : (Click to select) Beginning merchandise inventory Desired ending merchandising inventory

Total needs
(Click to select) Add Deduct : (Click to select) Beginning merchandise inventory Desired ending merchandising inventory

Required purchase	$

Reference no: EM13510218

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Prepare a merchandise purchases budget

Reference no: EM13510218

Reference no: EM13510218

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