Sheree_JohnsonII_Assignment7

Sheree_JohnsonII_Assignment7 - Sheree M. Johnson II...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Sheree M. Johnson II November 29, 2010 BUS340 - Managerial Accounting Week 7 Assignment Exercise 23-1 1. Merchandise Purchases Budget Note: Italic numbers represent known information provided in the exercise. Walker Company Merchandise Purchases Budget For July, August, and September July August September Next month’s budgeted sales. ............... 315,00 0 270,00 0 200,000 (10) Ratio of inventory to next month sales. .... x 15% (9) x 15% (9) x 15% (9) Budgeted ending inventory. ................... 47,250 (6) 40,500 (3) 30,00 0 Add budgeted sales for month. .............. 180,00 0 315,00 0 270,00 0 Required units available inventory. ....... 227,250 (7) 355,500 (4) 300,000 (1) Less beginning inventory. ...................... 27,000 (8) 47,250 (5) 40,500 (2) Budgeted merchandise purchases. ....... 200,25 0 308,25 0 259,50 0 The following notes (1) through (10) provide supporting calculations and explanations. Notes: (1) September required units Ending inventory 30,000 Add budgeted sales 270,000 Total required in September 300,000 (2) September Beginning Inventory Total required (1 above) 300,000 Less budgeted purchases (259,500 ) September beginning inventory 40,500 (3) September Beginning Inventory = August Ending Inventory
Background image of page 1

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

View Full DocumentRight Arrow Icon
(4) August required units Ending inventory 40,500 Add budgeted sales 315,000 Total required in August 355,500
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/16/2011 for the course BUS 340 taught by Professor Linlu during the Spring '10 term at Stratford.

Page1 / 6

Sheree_JohnsonII_Assignment7 - Sheree M. Johnson II...

This preview shows document pages 1 - 3. Sign up to view the full document.

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