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eller Company estimates that 2017 sales will be $42,800 in quarter 1, $51,300 in quarter 2, and $58,300 in quarter 3. Cost of goods sold
eller Company estimates that 2017 sales will be $42,800 in quarter 1, $51,300 in quarter 2, and $58,300 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending finished goods inventory equal to 18% of the next quarters expected cost of goods sold.
Prepare a merchandise purchases budget by quarter for the first 6 months of 2017.
ZELLER COMPANY Merchandise Purchases Budget June 30, 2017For the Quarter Ending June 30, 2017For the Six Months Ending June 30, 2017 | |||
Quarter | |||
1 | 2 | Six Months | |
Required Merchandise PurchasesDesired Ending Merchandise InventoryBeginning Merchandise InventoryBeginning Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesBudgeted Cost of Goods SoldTotal Required Units | $ | $ | |
AddLess: Required Merchandise PurchasesDirect Materials Per UnitBeginning Merchandise InventoryBeginning Direct MaterialsDesired Ending Merchandise InventoryDirect Materials PurchasesTotal Required UnitsDesired Ending Finished Goods InventoryBudgeted Cost of Goods Sold | |||
Direct Materials PurchasesBudgeted Cost of Goods SoldDesired Ending Merchandise InventoryDesired Ending Finished Goods InventoryRequired Merchandise PurchasesTotal Required UnitsBeginning Merchandise InventoryDirect Materials Per UnitBeginning Direct Materials | |||
AddLess: Direct Materials PurchasesDesired Ending Merchandise InventoryDesired Ending Finished Goods InventoryBudgeted Cost of Goods SoldTotal Required UnitsRequired Merchandise PurchasesBeginning Merchandise InventoryBeginning Direct MaterialsDirect Materials Per Unit | |||
Beginning Merchandise InventoryBudgeted Cost of Goods SoldDirect Materials Per UnitDesired Ending Finished Goods InventoryTotal Required UnitsRequired Merchandise PurchasesDesired Ending Merchandise InventoryDirect Materials PurchasesBeginning Direct Materials | $ | $ | $ |
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