 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Homework help - inventory purchases
Hello. I am having a heck of a time with this question: Noskey Corporation has budgeted sales amounts of $320,000 in June, $460,000 in July and $240,000 in August. Purchases of inventory are equal to the next month's cost of Goods Sold. The cost of goods sold is 30 % of the selling price. All purchases of inventory are on account; 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase. What is Noskey Corporation's budgeted total cash payments in July for inventory purchases?
|
||||
|
||||
|
$18000
key: Purchases of inventory are equal to the next month's cost of Goods Sold (Next month of July means August selling price,) so 30% x $240000 = $72000.
Key: 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase. 25% x $72000 = $18000. key: total cash payments in July for inventory purchases? Answer: $18000. Hope this Help.. not really sure if this is correct, but seems like it is. HEHEH |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
Can you expense inventory as soon as it is received even though it is still setting on the shelf and has not been used? What happens at the end of the year when the my MRP system states I have a million dollars worth of inventory? Is this legal?
Perpetual Inventory system Number of units Unit cost Unit sale price Mar.1 Beginning Inventory 50 15 Mar.2 Purchase 12 20 Mar.8 Sale 40 36
When Inventory is purchased, should the cost be placed under "Cost of Good" or "Inventory"? Is another option to make a category of COG under each inventory type? I/E: COG-hats, COG-coats etc. Thanks for your help. Don [email protected]
View more questions Search
|
