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Fanning, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Budgeted cost of goods sold April $ 74,000 May $ 84,000 June $ 94,000 $ 100,000 July Fanning had a beginning inventory balance of $4,100 on April 1 and a beginning balance in accounts payable of $14,100. The company desires to maintain an ending inventory balance equal to 10 percent of the next period's cost of goods sold. Fanning makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Fanning will report on the end-of-quarter pro forma balance sheet. c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Fanning will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April May June Budgeted cost of goods sold $ Plus: Desired ending inventory Inventory needed Less: Beginning inventory 74,000 $ 82,400 156,400 84,000 $ 94,000 84,000 94,000 S 156.400 $ 84,000 $ 94,000

Fanning, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Budgeted cost of goods sold April $ 74,000 May $ 84,000 June $ 94,000 $ 100,000 July Fanning had a beginning inventory balance of $4,100 on April 1 and a beginning balance in accounts payable of $14,100. The company desires to maintain an ending inventory balance equal to 10 percent of the next period's cost of goods sold. Fanning makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Fanning will report on the end-of-quarter pro forma balance sheet. c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Fanning will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April May June Budgeted cost of goods sold $ Plus: Desired ending inventory Inventory needed Less: Beginning inventory 74,000 $ 82,400 156,400 84,000 $ 94,000 84,000 94,000 S 156.400 $ 84,000 $ 94,000

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 10PB: All Temps has a policy of always paying within the discount period, and each of its suppliers...
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Fanning, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Budgeted cost of goods sold April $ 74,000 May $ 84,000 June $ 94,000 $ 100,000 July Fanning had a beginning inventory balance of $4,100 on April 1 and a beginning balance in accounts payable of $14,100. The company desires to maintain an ending inventory balance equal to 10 percent of the next period's cost of goods sold. Fanning makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Fanning will report on the end-of-quarter pro forma balance sheet. c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Fanning will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April May June Budgeted cost of goods sold $ Plus: Desired ending inventory Inventory needed Less: Beginning inventory 74,000 $ 82,400 156,400 84,000 $ 94,000 84,000 94,000 S 156.400 $ 84,000 $ 94,000
Transcribed Image Text:Fanning, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Budgeted cost of goods sold April $ 74,000 May $ 84,000 June $ 94,000 $ 100,000 July Fanning had a beginning inventory balance of $4,100 on April 1 and a beginning balance in accounts payable of $14,100. The company desires to maintain an ending inventory balance equal to 10 percent of the next period's cost of goods sold. Fanning makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Fanning will report on the end-of-quarter pro forma balance sheet. c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Fanning will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April May June Budgeted cost of goods sold $ Plus: Desired ending inventory Inventory needed Less: Beginning inventory 74,000 $ 82,400 156,400 84,000 $ 94,000 84,000 94,000 S 156.400 $ 84,000 $ 94,000
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