JJU s average markup on its products is 40% of the sales price. JJU purchases me
ID: 2343693 • Letter: J
Question
JJU s average markup on its products is 40% of the sales price. JJU purchases merchandise for resale to meet the current month's sales demand and to maintain desired monthly ending inventory of 25% of the next month's cost of goods sold. All purchases are on credit. JJU pays for one-half of a month's purchases in the month of purchase and the other half in the month following the purchase. All sales and purchases occur uniformly throughout the month. How much cash can JJU plan to collect from accounts receivable collections during July 20X81 : Compute the budgeted dollar value of JJU inventory on May 31. 20X8. How much merchandise should JJU plan to purchase during June 20X8? How much should JJU budget in August 20X8 for cash payments for merchandise purchased? Sales Budget Suppose a lumber yard has the following data: Accounts receivable. May 31: (.3 Times May sales of $350,000) = $105,000 Monthly forecasted sales: June, $430,000; July. $440,000; August. $500,000; September, $530,000 Sales consist of 70% cash and 30% credit. All credit accounts are collected in the month following the sales. Uncollectible accounts are negligible and may be ignored. Prepare a sales budget schedule and a cash collections budget schedule for June, July, and August. Sales Budget A Kyoto clothing wholesaler was preparing its sales budget for the first quarter of 20X8. Forecast sales are as follows (in thousands of yen):Explanation / Answer
June
Sales: $430,000
Collections: $406,000 (301,000 + 105,000)
July
Sales: $440,000
Collections: $407,000 (308,000 + 129,000)
August
Sales $500,000
Collections: $482,000 (350,000 + 132,000)
September
Sales: $530,000
Collections: $521,000 (371,000 + 150,000)
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