Hard Corporation projects sales of $230,000 in May, $250,000 in June, $260,000 in July, and $240,000 in

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Hard Corporation projects sales of $230,000 in May, $250,000 in June, $260,000 in July, and $240,000 in August. Since the dollar value of the company’s cost of goods sold is generally 65 percent of total sales, cost of goods sold is $149,500 in May, $162,500 in June, $169,000 in July, and $156,000 in August. The dollar value of its desired ending inventory is 25 percent of the following month’s cost of goods sold.

Compute the total purchases in dollars budgeted for June and the total purchases in dollars budgeted for June and the total purchases in dollars budgeted for July.


Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Principles of Accounting

ISBN: 978-1439037744

11th Edition

Authors: Needles, Powers, crosson

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