CH23HW

CH23HW - Problem 23-5A Part 1 SIMID SPORTS CO Sales Budgets...

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Problem 23-5A Part 1 SIMID SPORTS CO. Sales Budgets January, February, and March 2012 Budgeted Units Budgeted Unit Price Budgeted Total Dollars January 2012. ................................................. 3,500 \$55 \$192,500 February 2012. ............................................... 4,500 55 247,500 March 2012. .................................................... 5,500 55 302,500 Total for the first quarter. .............................. 13,500 \$742,500 Part 2 SIMID SPORTS CO. Merchandise Purchases Budgets January, February, and March 2012 January February March Total Next month’s budgeted sales. ............ 4,500 5,500 5,000 Ratio of inventory to future sales. ..... x 20% x 20% x 20% Budgeted ending inventory. ............... 900 1,100 1,000 Add budgeted sales. ........................... 3,500 4,500 5,500 Required available merchandise. ...... 4,400 5,600 6,500 Deduct beginning inventory. .............. (2,500 ) (900 ) (1,100 ) Units to be purchased. ........................ 1,900 4,700 5,400 12,000 Budgeted cost per unit. ...................... \$ 30 \$ 30 \$ 30 \$ 30 Budgeted merchandise purchases. ... \$ 57,000 \$141,000 \$162,000 \$360,000 Part 3 SIMID SPORTS CO. Selling Expense Budgets January, February, and March 2012 January February March Total Budgeted sales. ............................ \$192,500 \$247,500 \$302,500 Sales commission percent. ......... x 20% x 20% x 20% Sales commissions expense. ...... 38,500 49,500 60,500 \$148,500 Sales salaries. ............................... 2,500 2,500 2,500 7,500 Total selling expenses. ................ \$ 41,000 \$ 52,000 \$ 63,000 \$156,000

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Problem 23-5A (Continued) Part 4 SIMID SPORTS CO. General and Administrative Expense Budgets January, February, and March 2012 January February March Total Salaries. ............................................ \$ 6,000 \$ 6,000 \$ 6,000 \$18,000 Maintenance. .................................... 1,000 1,000 1,000 3,000 Depreciation*. ................................... 3,000 3,500 3,650 10,150 Total expenses. ................................ \$10,000 \$10,500 \$10,650 \$31,150 * Depreciation expense calculations Annual Deprec. Expense
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CH23HW - Problem 23-5A Part 1 SIMID SPORTS CO Sales Budgets...

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