15.29 - = 7,000 + 7,400 P = (7,000 7,000) + 7,400 P = 7,400...

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15.29 (25 min) Estimate purchases and cash disbursements a. L ACKAWANNA P RODUCTS Merchandise Purchase Budget (in units) February March Estimated sales………………………………. 8,60 0 7,00 0 Add: Estimated ending inventory………… 7,00 0 7,40 0 Total merchandise needs…………………. .. 15,60 0 14,40 0 Less: Beginning inventory…………………. 8,00 0 7,00 0 Merchandise to be purchased……………. . 7,60 0 7,40 0 Alternative method : Purchases are as follows: Februar y: BB + P = Sales + EB 8,000 + P = 8,600 + 7,000 = 15,600 – 8,000 = 7,600 = February purchases March: 7,000 + P
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Unformatted text preview: = 7,000 + 7,400 P = (7,000 7,000) + 7,400 P = 7,400 = March purchases = April sales b. Payments for these purchases are made as follows: Month of Delivery Month of Payment Total January February March February $2,482,4 $1,160,0 $1,322,4 00 00 00 March . 2,169,2 00 881,6 00 $1,287,6 00 5 && a $1,160,000 = 40% x $290 x 10,000 units. b $1,322,400 = 60% x $290 x 7,600 units. c $881,600 = 40% x $290 x 7,600 units. d $1,287,600 = 60% x $290 x 7,400 units....
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This note was uploaded on 11/25/2010 for the course ACCT 33010 taught by Professor Staff during the Spring '08 term at Kent State.

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15.29 - = 7,000 + 7,400 P = (7,000 7,000) + 7,400 P = 7,400...

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