- Exercise 14 7a Static Preparing An Inventory Purchases Budget Lo 14 3 Lumpkin Company Sells Lamps And Other Lighting F 1 (96.62 KiB) Viewed 12 times
- Exercise 14 7a Static Preparing An Inventory Purchases Budget Lo 14 3 Lumpkin Company Sells Lamps And Other Lighting F 2 (52.53 KiB) Viewed 12 times
Exercise 14-7A (Static) Preparing an inventory purchases budget LO 14-3 Lumpkin
Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Lumpkin's policy is to maintain an ending inventory balance equal to 10 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $40,000. Required a. Complete the inventory purchases budget by filling in the missing amounts. b. Determine the amount of cost of goods sold the
company will report on its first quarter pro forma income
statement. c. Determine the amount of ending inventory the
company will report on its pro forma balance sheet at the end of the first quarter. Complete this
question by entering your answers in the tabs below. Req A Req B and C Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget January February March Budgeted cost of goods sold $ 30,000 $32,000 $ 35,000 Plus: Desired ending inventory 3,200 Inventory needed 33,200 Less: Desired beginning inventory 6,000 Required purchases (on account) $ 27,200
b. Determine the amount of cost of goods sold the
company will report on its first quarter pro forma income
statement. c. Determine the amount of ending inventory the
company will report on its pro forma balance sheet at the end of the first quarter. Complete this
question by entering your answers in the tabs below. Req A Req B and C Determine the amount of cost of goods sold the
company will report on its first quarter pro forma income
statement. 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