Stewart, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2016, follows:
In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarter’s ending inventory should not be below $10,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $200,000 during the fourth quarter. The January 1 inventory was $36,000. Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period.
Answer to relevant QuestionsConsider the sales budget presented in Exercise E22A-33. Stewart’s selling and administrative expenses include the following: In exercise Rent, $1,100 per month Salaries, $2,000 per month Commissions, 4% of ...Yandell Company expects to sell 1,650 units of finished product in January and 2,000 units in February. The company has 240 units on hand on January 1 and desires to have an ending inventory equal to 60% of the next month's ...Grant Company has the following post-closing trial balance on December 31, 2016: Additional information: Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid ...Watercooler Office Supply’s March 31, 2016, balance sheet follows: The budget committee of Watercooler Office Supply has assembled the following data. a. Sales in April are expected to be $140,000. Watercooler forecasts ...Refer to the Smithson, Inc. data in Short Exercise S23-9. Last month, Smithson reported the following actual results: actual variable overhead, $10,400; actual fixed overhead, $2,750; actual production of 5,000 units at 0.30 ...
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