Question

The manager of MN Company give you the following data to prepare the required purchases for...

The manager of MN Company give you the following data to prepare the required purchases for the coming three months (January, February and March)

Estimated sales for January

$100,000

?

Sales increase by

5%

for the coming three months

Cost of goods sold (CGS)

60%

of sales

Beginning inventory

$12,000

Ending inventory equal to

20%

of next month CGS

Find the total purchases needed for March.

1.

between $60,000 and $61,000
2.

between $63,000 and $64,000
3.

between $66,000 and $67,000
4.

between $68,000 and $69,000
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
[The following information applies to the questions displayed below.] Carlson Auto Dealers Inc. sells a handmade...
[The following information applies to the questions displayed below.] Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2021, Carlson had three cars in inventory, as follows: Car ID Cost 203 $ 63,000 207 63,000 210 66,000 During 2021, each of the three autos sold for $93,000. Additional purchases (listed in chronological order) and sales for the year were...
MEL Company manufactures and sells cricket bats for school teams. MEL's best-selling lines are the practice...
MEL Company manufactures and sells cricket bats for school teams. MEL's best-selling lines are the practice bats line and the match bats line. In the first four months of next year, MEL company expects to sell the following:           Practice Bats           Match Bats Units Selling Price Units Selling Price January 40,000 $11.00 10,000 $21.00 February 88,000 $11.00 12,000 $21.00 March 92,000 $11.00 15,000 $21.00 April 100,000 $11.00 20,000 $21.00 MEL Company requires ending inventory of product equal to 20...
MEL Company manufactures and sells cricket bats for school teams. MEL's best-selling lines are the practice...
MEL Company manufactures and sells cricket bats for school teams. MEL's best-selling lines are the practice bats line and the match bats line. In the first four months of next year, MEL company expects to sell the following:           Practice Bats           Match Bats Units Selling Price Units Selling Price January 40,000 $11.00 10,000 $21.00 February 88,000 $11.00 12,000 $21.00 March 92,000 $11.00 15,000 $21.00 April 100,000 $11.00 20,000 $21.00 MEL Company requires ending inventory of product equal to 20...
Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the first six...
Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the first six months of 2010 are as follows: Month Unit Sales Month Unit Sales January 140,000 April 200,000 February 140,000 May 160,000 March 200,000 June 220,000 Beginning inventory for 2010 is 60,000 units. The budgeted inventory at the end of a month is 30 percent of units to be sold the following month. Purchase price per unit is $4. Prepare a purchases budget in units and...
Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the first six...
Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the first six months of 2010 are as follows: Month Unit Sales Month Unit Sales January 140,000 April 200,000 February 140,000 May 160,000 March 200,000 June 220,000 Beginning inventory for 2010 is 60,000 units. The budgeted inventory at the end of a month is 30 percent of units to be sold the following month. Purchase price per unit is $4. Prepare a purchases budget in units and...
Problem 9-4 Karam Inc. has compiled the following data in order to put together their first...
Problem 9-4 Karam Inc. has compiled the following data in order to put together their first quarter operating budget for 2011: January February March April Sales (units) 35,000 31,000 38,000 29,000 Each unit requires three hours of direct labor. Additional information: Karam sells each unit for $95. Company policy is to have 30 percent of next month's sales (in units) in ending finished goods inventory. Company policy is to have 40 percent of next month's production needs in ending raw...
Waterway Auto has developed the following production plan for its new auto part. January February March...
Waterway Auto has developed the following production plan for its new auto part. January February March April Budgeted production (units) 11,600 8,600 9,960 14,940 Each unit contains 3 pounds of raw material. The desired raw materials ending inventory is 132% of the next month’s production needs, plus an additional 504 pounds. January's beginning inventory requirements equal 132% of the current month's production needs, plus an additional 504 pounds. Prepare the direct materials purchases budget for the first three months of...
Production Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and...
Production Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 50,000 $8.75 7,000 $16.00 February 56,000 $8.75 8,000 $16.00 March 80,000...
Production Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and...
Production Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 50,000 $8.75 7,000 $16.00 February 56,000 $8.75 8,000 $16.00 March 80,000...
Upstairs Company has the following data: Month                Budgeted Sales January               &nbs
Upstairs Company has the following data: Month                Budgeted Sales January                        $112,000 February                        125,000 March                            132,000 April                              120,000 The gross profit rate is 40% of sales and ending inventory at December 31 was $26,325. Desired ending inventory levels are 25% of next month's sales at cost. What are the expected total purchases for March? A) $77,400 B) $86,480 C) $100,750 D) $105,575
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT