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6. please help Exercise 22-29A Merchandising: Computing budgeted accounts payable and purchases-sales forecast in dollars LO P4 Big Sound, a merchandising company specializing in home
6. please help
Exercise 22-29A Merchandising: Computing budgeted accounts payable and purchases-sales forecast in dollars LO P4 Big Sound, a merchandising company specializing in home computer speakers, budgets its monthly cost of goods sold to equal 80% of sales. Its inventory policy calls for ending inventory at the end of each month to equal 10% of the next month's budgeted cost of goods sold. All purchases are on credit, and 10% of the purchases in a month is paid for in the same month. Another 20% is paid for during the first month after purchase, and the remaining 70% is paid for in the second month after purchase. The following sales budgets are set July, $500.000; August. $440,000: September $470,000; October. $425,000; and November , $415,000. (Mint For part 1. refer to Exhibits 22A.2 and 22.3 for guidance, but note that budgeted sales ore in dollars for this assignment.) 1) Compute the budgeted merchandise purchases for July August September, and October July August September Budgeted ending inventory October November Required wailable inventory Required purchases $ 05 0 $ (2) Compute the budgeted payments on accounts payable for September and October Purchases paid in Purchases August September y purchases August purchases October After October Date October After October ( ugeed Payeens bi accus paya u Septei aru Ucuei. ... Purchases paid in Purchases August September July purchases August purchases September purchases October purchases (3) Compute the budgeted ending balances of accounts payable for September and October % unpaid as of Amount unpaid as September Purchases September 30 of September 30 July purchases August purchases September purchases September 30 budgeted accounts payable October Purchases % unpaid as of Amount unpaid as October 31 of October 31 July purchases August purchases September purchases October purchases October 31 budgeted accounts payable Step by Step Solution
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