Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE HELP ME ANSWER THIS QUESTION! PLEASE HELP!! part b Prepare the DM purchases budget for the third quarter, assuming Kevin stays with the current

PLEASE HELP ME ANSWER THIS QUESTION! PLEASE HELP!! part b
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Prepare the DM purchases budget for the third quarter, assuming Kevin stays with the current suppler. Specify amounts for each month and for the quarter overall (Round DM cost per linetar foot to 2 declmal ploces es 15.25) The credit terms with the current supplier allow for 30% to be paid in the month of purchase and 70% in the following month. While this supplier doesn't offer any discount for early payment. Kevin's company has been able to benefit from these terms by waiting until the month following the purchase to pay for most of each purchase: Outline the schedule of cash disbursements for quarter 3 that would accompany these purchases. Present amounts for each month and for the quarter overall. Also identify the NP bulance as of September 30 . (Plound anmen to 2 decimal places es 15.25 Transitioning from employee to manager has been exciting for Kevin! He enjoys having the responsibility and authority to mule decisions, and it is rewarding to join the management team, staring insights to make better decisions. One of his first responsibilities is to address the DM purchases budget. The company has a strong relationship with its current supplier, but the quality of the supplier's DM has declined. Knowing this, Kevin has already reached out to a different vendor to see whot kind of a deal it might offer. The OM information for Keviris divition and for each veridor just described is as follows - DM on hand as of July 1 sightly oxeeds expectasions at 1,560 linear board feet - Each unit requires 4 linear board feet. Kevin is most comfortable if the company haw 20 s of the followine monthis production nexds on hand. - The cost per linear foot is $750 with the curpent supplier. if s $800 with the new vendor - Planed production for July is 1,900 units, for Aupust is 2,000 units, for September is 2, 100 units:and for October is 1,900 units. - The MP balance related to June DM purchases in $34,125 on Julv 1 Prepare the OM purchases budget for the third quarter, assuming Kevin stays with the current supplier. 5 pecity amounts for each month and for the quarter overall. (Round DM cost per linear foot to 2 decimal ploces es 15.25)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Financial Reporting Text And Cases

Authors: E. Richard Brownlee, Kenneth R. Ferris, Mark E. Haskins

1st Edition

0256071942, 978-0256071948

More Books

Students also viewed these Accounting questions

Question

Create hy being extemfllly open: How can I [aim find change?

Answered: 1 week ago