Hwk 8A Answers

Hwk 8A Answers - ACCT 250 HOMEWORK CHAPTER 8A E8-34 1 Total...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT 250 HOMEWORK CHAPTER 8A 300a0058f7551747b40117c0bb3dd50b0bf2b322.xls PAGE 1 OF 3 E8-34 1 January February March Total Direct materials purchases 100,000 120,000 110,000 Portion paid in month of purchase 75% 90,000 82,500 Portion paid in month after purchase 25% 25,000 30,000 Total cash payments for purchases 115,000 112,500 2 January February March Total cash payments for purchases 115,000 112,500 Less: Cash discount -2% (2,300) (2,250) Total cash payments for purchases 112,700 110,250 3 If the discount rate exceeds the firm's cost of capital, then it is economically beneficial to make payments early to achieve the discount. E8-36 Q1 Q2 Q3 Q4 Budgeted sales (units) 45,000 38,000 34,000 48,000 Add: Ending inventory 10% 3,800 3,400 4,800 Total units needed 48,800 41,400 38,800 Less: Beginning inventory (4,500) (3,800) (3,400) Budgeted production (units) 44,300 37,600 35,400 Budgeted production (units) 44,300 37,600 35,400 Pounds of DM per unit 3 3 3 3 Total pounds of DM needed 132,900
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Hwk 8A Answers - ACCT 250 HOMEWORK CHAPTER 8A E8-34 1 Total...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online