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# 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 = 7,000 + 7,400

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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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15.29 - = 7,000 7,400 P =(7,000 – 7,000 7,400 P = 7,400 =...

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