Question

Ironwood sells a single product for $10. The purchase cost is $4 per unit and Ironwood...

Ironwood sells a single product for $10. The purchase cost is $4 per unit and Ironwood pays a 20% sales commission. Fixed costs are $45,000 per month including $12,000 depreciation, and the company maintains inventory equal to budgeted sales needs for the following month. The following budgeted data are available.

  

Inventory on hand

February 1        

28,000 units

    Budgeted sales            

                   - February

24,000 units

                   - March                             

26,000 units

                   - April                                

25,000 units

  1. Compute total budgeted income for February
  2. Compute total budgeted income for March.
  3. Find budgeted inventory at March 31 in units
  4. Find budgeted inventory at March 31 in dollars.
  5. Find budgeted purchases for March in units
  6.   Find budgeted purchases for March in dollars.
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
Merline Manufacturing makes its product for $65 per unit and sells it for $137 per unit....
Merline Manufacturing makes its product for $65 per unit and sells it for $137 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows. MERLINE MANUFACTURING Income Statement For Month Ended December 31, 2017 Sales $ 1,370,000 Cost of goods sold 650,000 Gross profit 720,000 Operating expenses Sales commissions (10%) 137,000 Advertising 214,000 Store rent 24,700 Administrative salaries 43,500 Depreciation—Office equipment 53,500 Other expenses 12,700 Total expenses 485,400 Net income...
Badlands, Inc. manufactures a household fan that sells for $20 per unit. All sales are on...
Badlands, Inc. manufactures a household fan that sells for $20 per unit. All sales are on account, with 40 percent of sales collected in the month of sale and 60 percent collected in the following month. The data that follow were extracted from the company’s accounting records. Badlands maintains a minimum cash balance of $35,000. Total payments in January 20x1 are budgeted at $210,000. A schedule of cash collections for January and February of 20x1 revealed the following receipts for...
Merline Manufacturing makes its product for $65 per unit and sells it for $143 per unit....
Merline Manufacturing makes its product for $65 per unit and sells it for $143 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows. MERLINE MANUFACTURING Income Statement For Month Ended December 31, 2017 Sales $ 1,430,000 Cost of goods sold 650,000 Gross profit 780,000 Operating expenses Sales commissions (10%) 143,000 Advertising 226,000 Store rent 25,300 Administrative salaries 46,500 Depreciation—Office equipment 56,500 Other expenses 13,300 Total expenses 510,600 Net income...
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...
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 130,000 April 190,000 February 160,000 May 190,000 March 190,000 June 230,000 Beginning inventory for 2010 is 40,000 units. The budgeted inventory at the end of a month is 20 percent of units to be sold the following month. Purchase price per unit is $3. Prepare a purchases budget in units and...
Webster Company has the following sales budget.       January            $200,000             February&nbsp
Webster Company has the following sales budget.       January            $200,000             February           $240,000             March               $300,000             April                  $360,000       Cost of sales is 70% of sales. Sales are collected 40% in the month of sale and 60% in the following month. Webster keeps inventory equal to double the coming month's budgeted sales requirements. It pays for purchases 80% in the month of purchase and 20% in the month after purchase. Inventory at the beginning of January is $190,000.   Webster...
Lilliput, a one-product mail-order firm, buys its product for $70 per unit and sells it for...
Lilliput, a one-product mail-order firm, buys its product for $70 per unit and sells it for $132 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows.    LILLIPUT COMPANY Income Statement For The Month Ended December 31, 2011   Sales $ 1,320,000   Cost of goods sold 700,000      Gross profit 620,000   Expenses      Sales commissions (10%) 132,000      Advertising 204,000      Store rent 24,200        Administrative salaries 41,000      Depreciation 51,000      Other expenses 12,200   ...
Abacus Company sells its product for $180 per unit. Its actual and projected sales follow.   ...
Abacus Company sells its product for $180 per unit. Its actual and projected sales follow.    Units Dollars   April (actual) 6,000       $1,080,000      May (actual) 2,000       360,000      June (budgeted) 7,000       1,260,000      July (budgeted) 6,500       1,170,000      August (budgeted) 3,800       684,000    All sales are on credit. Recent experience shows that 22% of credit sales is collected in the month of the sale, 48% in the month after the sale, 28% in the second...
Aztec Company sells its product for $180 per unit. Its actual and budgeted sales follow. Units...
Aztec Company sells its product for $180 per unit. Its actual and budgeted sales follow. Units Dollars April (actual) 4,500 $ 810,000 May (actual) 2,200 396,000 June (budgeted) 7,500 1,350,000 July (budgeted) 5,000 900,000 August (budgeted) 3,600 648,000 All sales are on credit. Recent experience shows that 30% of credit sales is collected in the month of the sale, 40% in the month after the sale, 29% in the second month after the sale, and 1% proves to be uncollectible....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT