Monument Corp. is preparing its budget for the first quarter of 2018. The follow
ID: 2416352 • Letter: M
Question
Monument Corp. is preparing its budget for the first quarter of 2018. The following data is? provided:
Inventory, Purchases, and COGS Budget
Jan
Feb
March
Cost of goods sold? (a)
$ 33 comma 000$33,000
$ 26 comma 000$26,000
$ 40 comma 000$40,000
Desired ending inventory? (b)
15 comma 20015,200
18 comma 00018,000
??
Total inventory required
48 comma 20048,200
44 comma 00044,000
?Less: Beginning inventory
?(20 comma 00020,000?)
?(15 comma 20015,200?)
Purchases
28 comma 20028,200
28 comma 80028,800
?(a) COGS? = 75% of sales
$ 10 comma 000$10,000
2020?%
April's cost of goods sold is 28 comma 00028,000.
The amount of Merchandise Inventory to be shown on the budgeted balance sheet at March 31 would be? ________.
Inventory, Purchases, and COGS Budget
Jan
Feb
March
Cost of goods sold? (a)
$ 33 comma 000$33,000
$ 26 comma 000$26,000
$ 40 comma 000$40,000
Desired ending inventory? (b)
15 comma 20015,200
18 comma 00018,000
??
Total inventory required
48 comma 20048,200
44 comma 00044,000
?Less: Beginning inventory
?(20 comma 00020,000?)
?(15 comma 20015,200?)
Purchases
28 comma 20028,200
28 comma 80028,800
?(a) COGS? = 75% of sales
?(b)$ 10 comma 000$10,000
?+2020?%
of COGS for next monthExplanation / Answer
Calculate amount of ending merchandise inventory to be shown at march 31 balance sheet
Ending merchandise inventory on march 31 = (28000*20%)+10000 = $15600
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