Managerial Accounting ACCT 131 Chapter 7 Homework

3)

.

Naftel Company sells lamps and other lighting fixtures. Naftel’s policy is to maintain an ending inventory balance equal to 10 percent of the following month’s cost of goods sold. April’s budgeted cost of goods sold is $75,000. The purchasing department manager prepared the following inventory purchases budget for

January

 

Required:
a.

Complete the inventory purchases budget by filling in the missing amounts. (Input all amounts as positive values. Omit the “$” sign in your response.)

 

 January

$

 $

 $

 

 

  $ 

February March
  Budgeted cost of goods sold 50,000 54,000 60,000
  Plus: Desired ending inventory 5,400 $  

  8)

McCarty Pointers Corporation expects to begin operations on January 1, 2012; it will operate as a specialty sales company that sells laser pointers over the Internet. McCarty expects sales in January 2012 to total $200,000 and to increase 10 percent per month in February and March. All sales are on account. McCarty expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month following the sale.

 Required:

a.

Prepare a sales budget for the first quarter of 2012. (Omit the “$” sign in your response.)

 

JanuaryFebruaryMarch

$ $ $ $ $ $ $ $ $  $   $   $     $      

  

  Sales Budget
  Sales on account $ [removed]  
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