Solomon Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases
Question:
Solomon Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Solomon’s policy is to maintain an ending inventory balance equal to 15 percent of the following month’s cost of goods sold. April’s budgeted cost of goods sold is $80,000.
Required
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Complete the inventory purchases budget by filling in the missing amounts.
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Determine the amount of cost of goods sold the company will report on its first-quarter pro forma income statement.
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Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
b. Cost of goods sold c. Ending inventory
Complete the inventory purchases budget by filling in the missing amounts.
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Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old