Question
9 The management of Wengel Corporation is considering dropping product 890D. Data from the company's accounting system appear below. Sales Variable expenses Fixed manufacturing expenses
9 The management of Wengel Corporation is considering dropping product 890D. Data from the company's accounting system appear below. Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $736,400 $382,600 $250,600 $213,800 014205 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $177,000 of the fixed manufacturing expenses and $153.400 of the fixed selling and administrative expenses are avoidable if product 890D is discontinued Required: What would be the financial advantage (disadvantage) of dropping 8900? Should the product be dropped? hd operating Income Diss) would if product 8900 we dropped. Therefore, the product dropped 30 L 014231 Capes Corporation is a wholesaler of Industrial goods. Data regarding the store's operations follow: Sales are budgeted at $380,000 for November, $390,000 for December, and $370,000 for January. Collections are expected to be 50% in the month of sale and 50% in the month following the sale. The cost of goods sold is 75% of sales. The company desires an ending merchandise inventory equal to 30% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $73,000, The November beginning balance in the accounts payable account is $260,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December b. Prepare a Merchandise Purchases Budget for November and December Complete this question by entering your answers in the tabs below. Required A Required Prepare a Schedule of Expected Cash Collections for November and December Sales Schedule of Expected Cash Collections Accounts receivable November sales November December December sales Total cash collections S 05 A Required > Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $380,000 for November, $390,000 for December, and $370,000 for January Collections are expected to be 50% in the month of sale and 50% in the month following the sale. The cost of goods sold is 75% of sales. The company desires an ending merchandise inventory equal to 30% of the cost of goods sold in the following month Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $73,000. The November beginning balance in the accounts payable account is $260.000. Required: a. Prepere a Schedule of Expected Cash Collections for November and December b. Prepare a Merchandise Purchases Budget for November and December Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Merchandise Purchases Budget for November and December Merchandise Purchases Budget Cost of goods sold Total needs Required purchases November December 0 B 0$ Required A
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