Question : 165.A department store has budgeted cost of goods sold for : 1258652

165.A department store has budgeted cost of goods sold for March of $60,000 for its women’s shorts. Management wants to have $12,000 of shorts in inventory at the end of the month to prepare for the summer season. Beginning inventory in March was $8,000. What dollar amount of shorts should be purchased to meet the above plans?    

166.A sporting goods store budgeted August purchases of ski jackets at $140,000. The store had ski jackets costing $12,000 in its inventory at the beginning of August; and to cover part of anticipated September sales, they expect to have $25,000 of ski jackets in inventory at the end of the month of August. What is the budgeted cost of goods sold for August?    

167.In preparing a budget for the last three months of the current year, Country Cozy Company is planning the units of merchandise it must order each month. The company’s policy is to have 15% of the next month’s sales in its inventory at the end of each month. Projected sales for October, November, and December are 27,000 units, 29,500 units, and 31,000 units, respectively. How many units must be ordered in November?    

168.Dado, Inc. is preparing its budget for the second quarter. The following sales data have been forecasted: 

AprilMayJuneJulyAugust

Unit sales640720780620660

Additional information follows:

Inventory on March 31:   192 Units

Desired ending inventory each month:   30% of next month’s sales

Prepare a merchandise purchases budget for the total units to be purchased in the months of April, May, and June, as well as the total unit purchases for entire the quarter.    

169.Greco Company has prepared the following forecasts of monthly sales: 

JulyAugustSeptemberOctober

Sales (in Units)4,5005,3004,0003,700

Greco has decided that the number of units in its inventory at the end of each month should equal 25% of the next month’s sales. The budgeted cost per unit is $30. (1) How many units should be in July’s beginning inventory? (2) What amount should be budgeted for the cost of merchandise purchases in July?    

170.Hammerly Corporation is preparing its master budget for the quarter ending March 31. It sells a single product for $25 a unit. Budgeted sales are 40% cash and 60% on credit. All credit sales are collected in the month following the sales. Budgeted sales for the next four months follow: 

JanuaryFebruaryMarchApril

At December 31, the balance in accounts receivable is $10,000, which represents the uncollected portion of December sales. The company desires merchandise inventory equal to 30% of the next month’s sales in units. The December 31 balance of merchandise inventory is 340 units, and inventory cost is $10 per unit. Forty percent of the purchases are paid in the month of purchase and 60% are paid in the following month. At December 31, the balance of Accounts Payable is $8,000, which represents the unpaid portion of December’s purchases. Operating expenses are paid in the month incurred and consist of: • Sales commissions (10% of sales) • Freight (2% of sales) • Office salaries ($2,400 per month) • Rent ($4,800 per month) Depreciation expense is $4,000 per month. The income tax rate is 40%, and income taxes will be paid on April 1. A minimum cash balance of $10,000 is required, and the cash balance at December 31 is $10,200. Loans are obtained at the end of a month in which a cash shortage occurs. Interest is 1% per month, based on the beginning of the month loan balance, and must be paid each month. If the ending cash balance exceeds the minimum, the excess will be applied to repaying any outstanding loan balance. At December 31, the loan balance is $0. Prepare a master budget (round all dollar amounts to the nearest whole dollar) for each of the months of January, February, and March that includes the: • Sales budget • Schedule of cash receipts • Merchandise purchases budget • Schedule of cash disbursements for merchandise purchases • Schedule of cash disbursements for selling and administrative expenses (combined) • Cash budget, including information on the loan balance • Budgeted income statement for the quarter