Each months ending inventory should equal 20% of the following months budgeted cost of goods sold.True or false?
Calculate the aimed profit percentages for the three products and under the full absorption costing method,
August 8, 2017How much of a problem is it that the United States has become so dependent on money borrowed from foreign countries?
August 8, 2017Each months ending inventory should equal 20% of the following months budgeted cost of goods sold.True or false?
The following data relate to the operations of Picanuy Corporation, a wholesale distributor of consumer goods:
Current assets as of December 31:
Cash $ 6,000
Accounts receivable $36,000
Inventory $9,800
Buildings and equipment, net $110,885
Accounts payable $32,550
Capital stock $100,000
Retained earnings $30,135
a. The gross margin is 30% of sales. (In other words, cost of goods sold is 70% of sales.)
b. Actual and budgeted sales data are as follows:
December (actual) $60,000
January $70,000
February $80,000
March $85,000
April $55,000
c. Sales are 40% for cash and 60% on credit. Credit sales are collected in the month following sale. The accounts receivable at December 31 are the result of December credit sales.
d. Each months ending inventory should equal 20% of the following months budgeted cost of goods sold.
