Coronet Company and Presidente Company
Not what you're looking for?
Please see attached file.
13. Coronet Company provided the following information related to its inventory sales and purchases for December 2007 and the first quarter of 2008:
Desired ending inventory levels are 25% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February 2008 would be
A) $ 67,500
B) $ 90,000
C) $ 82,500
D) $112,500
14. Presidente Company provided the following information relevant to its inventory sales and purchases for December 2007 and the first quarter of 2008:
Desired ending inventory levels are 25% of the following month's projected cost of goods sold. The company purchases all inventory on account. January 2008 budgeted purchases are $75,000. The normal schedule for inventory payments is 60% payment in month of purchase and 40% payment in month following purchase
Budgeted cash payments for inventory in February 2008 would be
A) $66,300
B) $79,500
C) $49,500
D) $76,300
15. Sales for January are budgeted at 50,000 units, and the company expects sales to increase 7% each month. How many units will need to be purchased in February if the company's policy is to keep ending inventory each month at 10,000 units?
A) 53,500 units
B) 58,500 units
C) 63,500 units
D) none of the above
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to calculate budgeted purchases of inventory, budgeted cash payments for inventory, and how many units will need to be purchased in February if the company's policy is to keep ending inventory each month at 10,000 units.
Solution Preview
13. Coronet Company provided the following information related to its inventory sales and purchases for December 2007 and the first quarter of 2008:
Desired ending inventory levels are 25% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February 2008 would be
A) $ 67,500
B) $ 90,000
C) $ 82,500
D) $112,500
Answer: C
Beginning balance + Budgeted purchases of inventory - Budgeted Cost of goods sold = Desired ending ...
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)