Fanning Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Fanning Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Fannings policy is to maintain an ending inventory balance equal to 15 percent of the following months cost of goods sold. Aprils budgeted cost of goods sold is $82,000.
Required
A Complete the inventory purchases budget by filling in the missing amounts.
B Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement.
C Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
Complete the inventory purchases budget by filling in the missing amounts.
Inventory Purchases Budget
January
February
March
Budgeted cost of goods sold
$51,000
$55,000
$61,000
Plus: Desired ending inventory
8,250
Inventory needed
59,250
Less: Beginning inventory
7,650
Required purchases (on account)
$51,600
b.
Cost of goods sold
c.
Ending inventory
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
