Baird Company sells lamps and other lighting fixtures. The purchasing department

Question

Baird Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Baird's policy is to maintain an ending inventory balance equal to 10 percent of the following month's cost of goo sold. April's budgeted cost of goods sold is $75,000. 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 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 February March January $ 54,000$ 58,000 64,000 Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) 54,400 5,800 59,800 5,400

Explanation / Answer

a) Required purchase :

b) Cost of goods sold = 54000+58000+64000 = 176000

c) Ending inventory = 7500

January February March Budgeted cost of goods sold 54000 58000 64000 Plus : Desired ending inventory 5800 6400 7500 Inventory needed 59800 64400 71500 Less: Beginning inventory 5400 5800 6400 Required purchase (on account) 54400 58600 65100

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.