Hardy Company's cost of goods sold is consistently 60% of sales. The company plans ending merchandise inventory for each month equal to 20% of the next month's budgeted cost of goods sold. All...


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Hardy Company's cost of goods sold is consistently 60% of sales. The company plans ending merchandise inventory for each month<br>equal to 20% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 50% of the purchases<br>made during a month is paid for in that month. Another 35% is paid for during the first month after purchase, and the remaining 15% is<br>paid for during the second month after purchase. Expected sales are August (actual), $325,000; September (actual), $320,000;<br>October (estimated), $250,000; and November (estimated), $310,000.<br>Use this information to determine October's expected cash payments for purchases.<br>Calculate Monthly Purchases:<br>August<br>September<br>October<br>November<br>Budgeted ending inventory<br>76,800 $<br>57,600 $<br>86,400<br>Cost of goods sold (estimated)<br>320,000<br>256,000<br>192,000<br>Required available inventory<br>396,800<br>313,600<br>278,400<br>Budgeted beginning inventory<br>(96,000)<br>(76,800)<br>(57,600)<br>Required purchases<br>2$<br>300,800 $<br>236,800 $<br>220,800<br>Calculate Payments Made for Inventory:<br>Purchases paid in<br>Purchases<br>August<br>September<br>October<br>After October<br>August purchases<br>24<br>300,800 $<br>180,480 $<br>902,440 $<br>30,080 $ -812,200<br>September purchases<br>236,800<br>142,080<br>71,040 $<br>23,680<br>%24<br>

Extracted text: Hardy Company's cost of goods sold is consistently 60% of sales. The company plans ending merchandise inventory for each month equal to 20% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 50% of the purchases made during a month is paid for in that month. Another 35% is paid for during the first month after purchase, and the remaining 15% is paid for during the second month after purchase. Expected sales are August (actual), $325,000; September (actual), $320,000; October (estimated), $250,000; and November (estimated), $310,000. Use this information to determine October's expected cash payments for purchases. Calculate Monthly Purchases: August September October November Budgeted ending inventory 76,800 $ 57,600 $ 86,400 Cost of goods sold (estimated) 320,000 256,000 192,000 Required available inventory 396,800 313,600 278,400 Budgeted beginning inventory (96,000) (76,800) (57,600) Required purchases 2$ 300,800 $ 236,800 $ 220,800 Calculate Payments Made for Inventory: Purchases paid in Purchases August September October After October August purchases 24 300,800 $ 180,480 $ 902,440 $ 30,080 $ -812,200 September purchases 236,800 142,080 71,040 $ 23,680 %24
Calculate Monthly Purchases:<br>August<br>September<br>October<br>November<br>Budgeted ending inventory<br>76,800 $<br>57,600 $<br>86,400<br>Cost of goods sold (estimated)<br>320,000<br>256,000<br>192,000<br>Required available inventory<br>396,800<br>313,600<br>278,400<br>Budgeted beginning inventory<br>(96,000)<br>(76,800)<br>(57,600)<br>Required purchases<br>300,800 $<br>236,800 $<br>220,800<br>Calculate Payments Made for Inventory:<br>Purchases paid in<br>--- ---<br>es<br>Purchases<br>August<br>September<br>October<br>After October<br>August purchases<br>2$<br>300,800<br>2$<br>180,480<br>2$<br>902,440 $<br>30,080 $ -812,200<br>September purchases<br>236,800<br>142,080<br>71,040 $<br>23,680<br>October purchases<br>220,800<br>132,480 $<br>88,320<br>2$<br>180,480<br>2$<br>1,044,520 $<br>233,600 $ -700,200<br>Determine October's Expected Cash Payments for Purchases.<br>October's expected cash payments for purchases<br>2$<br>233,600<br>%24<br>%24<br>

Extracted text: Calculate Monthly Purchases: August September October November Budgeted ending inventory 76,800 $ 57,600 $ 86,400 Cost of goods sold (estimated) 320,000 256,000 192,000 Required available inventory 396,800 313,600 278,400 Budgeted beginning inventory (96,000) (76,800) (57,600) Required purchases 300,800 $ 236,800 $ 220,800 Calculate Payments Made for Inventory: Purchases paid in --- --- es Purchases August September October After October August purchases 2$ 300,800 2$ 180,480 2$ 902,440 $ 30,080 $ -812,200 September purchases 236,800 142,080 71,040 $ 23,680 October purchases 220,800 132,480 $ 88,320 2$ 180,480 2$ 1,044,520 $ 233,600 $ -700,200 Determine October's Expected Cash Payments for Purchases. October's expected cash payments for purchases 2$ 233,600 %24 %24
Jun 09, 2022
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