Can you Please tell me where I went wrong?? I don't understand how to deduct beginning Inventory. The 3rd page is the answers. I am looking to find:
1.Cash paid for expenses in April and May.
2.Cash from sales in May, June and July.
EXAM 3 STUDY GUIDE PART A CHAPTER 5 lil chitlins Be good IN. chillins and FOLLOW DIRECTIONS! Given Sales, to find Given Production, to find Production Material Purchases Sales (units) Production + End Inv (units) x Material per unit Total Material for Production Beg Inv (units) + End Inv Production (units) Total - Beg Inv Material Purchases Ending inventory is a percentage of next period's sales when finding production, and production when finding material purchases. Soster makes and sells widgets. Each widget uses 2 pounds of zinc alloy. Budgeted sales (in units) of widgets for the next five months is as follows: Widgets March April May June July Budgeted sales (units) 16,000 12,000 14,000 13,900 15,500 The company wants to maintain monthly ending inventories of widgets equal to 25% of next month's sales. The company wants to maintain monthly ending inventories of zinc alloy equal to 30% of the following month's budgeted production needs. The pounds of zinc alloy on hand on March 1 were equal to the budgeted amount. The cost of zinc alloy is $4.00 per pound Soster pays 40% of raw material purchases in the month purchased and pays the remaining 60% in the following month. Determine how much cash will be paid in Apriland May to the zinc alloy suppliers. The sales price of a widget is $50. Soster collects 25%% of sales in the month of the sale, 65% in the next month, and 8% in the second month after the sale. The remaining amount is uncollectable. Determine how much cash will be collected in May, Jane and July Material Cost: Mar APR May ) July 16000a 12/0004 14,000 13, 900 15,500 2lbs 21bs * 2lbs 2 lbs * 21bs $ 4/lbs x $4/lbs X $4 lbs $4/lbs $ 128,000 $ 96,000 $112,000 $ 111 200 $ 124,000 Cost 40% in Mon. 51, 200 38, 400 44, 800 44, 480 49, 600 Cost GOX. Next Mon. 761 800 57, 600 66, 720 15, 200 67, 200 102, 400 1 11, 680\fExam 3 Study Guide Part B Chapter 5 Part B Widgets Budgeted sales (units) March April May June July Ending Inventory (25%) 16,000 12,000 14,000 13,900 15,500 Total 3,000 3,500 3,475 3,875 19,000 Beginning Inventory 15,500 17,475 17,775 Production ( 4,000) ( 3,000) ( 3,500) ( 3,475) 15,000 12,500 13,975 14,300 Zinc x 2 x 2 x 2 x 2 Pounds of zinc for production 30,000 25,000 27,950 28,600 Ending Inventory (30%) 7,500 8,385 8,580 Total 37,500 33,385 36,530 Beginning Inventory ( 9,000) ( 7,500) ( 8,385) Zinc Purchases (lbs) 28,500 25,885 28,145 x $4 x $4 x $4 Zinc Purchases ($) $114,000 $103,540 $112,580 40% month of purchases $ 45,600 $ 41,416 $ 45,032 60% last month's purchases $ 68,400 $ 62,124 Total Cash to Zinc suppliers $109,816 $107,156 Widgets March April May June July Budgeted sales (units) 16,000 12,000 14,000 13,900 15,500 x $50 x $50 x $50 x $50 x $50 Budgeted sales $ $800,000 $600,000 $700,000 $695,000 $775,000 25% month of sale $200,000 $150,000 $175,000 $173,750 $193,750 65% last month's sale 520,000 390,000 455,000 451,750 8% two month's ago 64,000 48,000 55,600 Budgeted Collections $629,000 $676,750 $701,100 M SOD . BOUGOU
