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# 5 Managerial Accounting Problems

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1. The manager of MN Company give you the following data to prepare the required purchases for the coming three months (January, February and March)

Estimated sales for January \$ 100,000
Sales increase by 5% for the coming three months
Cost of goods sold (CGS) 60% of sales
Beginning inventory \$ 12,000
Ending inventory equal to 20% 0f next month CGS
Find the total purchases needed for February.

1. between \$60,000 and \$61,000

2. between \$63,000 and \$64,000

3. between \$66,000 and \$67,000

4. between \$68,000 and \$69,000

2. The manager of MN Company give you the following data to prepare the required purchases for the coming three months (January, February and March)

Estimated sales for January \$ 100,000
Sales increase by 5% for the coming three months
Cost of goods sold (CGS) 60% of sales
Beginning inventory \$ 12,000
Ending inventory equal to 20% 0f next month CGS
Find the total purchases needed for March.

1. between \$60,000 and \$61,000

2. between \$63,000 and \$64,000

3. between \$66,000 and \$67,000

4. between \$68,000 and \$69,000

3. The manager of MN Company give you the following data to prepare the required purchases for the coming three months (January, February and March)

Estimated sales for January \$ 100,000
Sales increase by 5% for the coming three months
Cost of goods sold (CGS) 60% of sales
Beginning inventory \$ 12,000
Ending inventory equal to 20% 0f next month CGS
Find the total purchases needed for January.

1. between \$60,000 and \$61,000

2. between \$63,000 and \$64,000

3. between \$66,000 and \$67,000

4. between \$68,000 and \$69,000

4. Assume the following data pertains to ABC Company
Estimated average selling price per unit \$10.00
Estimated units to be sold in 8-2009 1,000.00
Estimated increase in unit sales 10%
Month 8 9 10 11
Units 1,000 1,100 1,210 1,331
Selling price per unit \$ 10.00 \$ 10.00 \$ 10.00 \$ 10.00
Total estimated sales \$ 10,000.00 \$ 11,000.00 \$12,100.00 \$13,310.00
Assume
Cost of goods sold (CGS) 65% of sales
Month 8 9 10
Estimated CGS \$ 6,500.00 \$ 7,150.00 \$ 7,865.00 \$ 8,651.50
Assume
Beginning inventory \$ 2,100.00
Ending inventory 20% next month CGS
Find the purchases needed for September

1. Between \$5,200 and \$5,300

2. Between \$7,200 and \$7,300

3. Between \$5,800 and \$5,900

4. Between \$8,00 and \$8,100

5. Assume the following data pertains to ABC Company
Estimated average selling price per unit \$10.00
Estimated units to be sold in 8-2009 1,000.00
Estimated increase in unit sales 10%
Month 8 9 10 11
Units 1,000 1,100 1,210 1,331
Selling price per unit \$ 10.00 \$ 10.00 \$ 10.00 \$ 10.00
Total estimated sales \$ 10,000.00 \$ 11,000.00 \$12,100.00 \$13,310.00
Assume
Cost of goods sold (CGS) 65% of sales
Month 8 9 10
Estimated CGS \$ 6,500.00 \$ 7,150.00 \$ 7,865.00 \$ 8,651.50
Assume
Beginning inventory \$ 2,100.00
Ending inventory 20% next month CGS
Find the purchases needed for August

1. Between \$5,200 and \$5,300

2. Between \$7,200 and \$7,300

3. Between \$5,800 and \$5,900

4. Between \$8,00 and \$8,100

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