Seved Required a. Complete the inventory purchases budget by filling in the miss
ID: 2431917 • Letter: S
Question
Seved 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 eport on its pro forma balance sheet at the end of the first quarter ok Complete this question by entering your answers in the tabs below. Req A Req B and C Complete the Inventory.purchases budget by. filling in the missing amounts Inventory Purchases Budget January February March S 56,000 S 60,000$ 66,000 Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account)S 9,000 65,000 8400 56,600 C Req A Req B and CExplanation / Answer
Requirement a
Inventory Purchase budget
January
February
March
Budgeted Cost of Goods Sold
$ 56,000.00
$ 60,000.00
$ 66,000.00
Plus: Desired Ending Inventory
$ 9,000.00
$ 9,900.00
$ 11,850.00
Inventory needed
$ 65,000.00
$ 69,900.00
$ 77,850.00
Less: Beginning Inventory
$ 8,400.00
$ 9,000.00
$ 9,900.00
Required production (on Account)
$ 56,600.00
$ 60,900.00
$ 67,950.00
Requirement b
Cost of Goods sold to be reported on first quarter pro forma income report will be $182000.00
(56000+60000+66000)
Requirement c
Ending Inventory to be reported for first quarter pro forma balance sheet will be $11850.00. Calculated as below
April Cost of Goods Sold
$ 79,000.00
Desired Ending Inventory for March
15% of April CoGS
Desired Ending Inventory for March (79000*15%)
$ 11,850.00
Requirement a
Inventory Purchase budget
January
February
March
Budgeted Cost of Goods Sold
$ 56,000.00
$ 60,000.00
$ 66,000.00
Plus: Desired Ending Inventory
$ 9,000.00
$ 9,900.00
$ 11,850.00
Inventory needed
$ 65,000.00
$ 69,900.00
$ 77,850.00
Less: Beginning Inventory
$ 8,400.00
$ 9,000.00
$ 9,900.00
Required production (on Account)
$ 56,600.00
$ 60,900.00
$ 67,950.00
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