Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help ive tried everything 4 Hardy Company's cost of goods sold is consistently 60% of sales. The company plans ending merchandise inventory for each
please help ive tried everything
4 Hardy Company's cost of goods sold is consistently 60% of sales. The company plans ending merchandise inventory for each month equal to 20% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 50% of the purchases made during a month is paid for in that month. Another 35% is paid for during the first month after purchase, and the remaining 15% is paid for during the second month after purchase. Expected sales are: August (actual). $325,000; September (actual). $320,000; October (estimated) $250,000; and November (estimated). $310,000. Use this information to determine October's expected cash payments for purchases. Answer is complete but not entirely correct. Calculate Monthly Purchase November 186,000 Budgeted ending Inventory Cost of goods sold (estimated) Required available inventory Budgeted beginning inventory Required purchases August September S 38,400 $ 30,000 195.000 192,000 233,400 222.000 39,000 38,400 $ 194400 $ 163,600 October 15 37,200 150,000 187,200 30,000 157 200 Calculate Payments Made for inventory Purchases Purchases paid in August September October 325.000 $ 220.000 $ 187 200 Alter October $ -537.800 August Durchases 5194400 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started