Problem 8-48 Name:
Insert your answers in the gray-shaded cells of column F. Enter amounts to be
subtracted as negatives. Enter formulas where appropriate. If an answer is
incorrect, the word “wrong” will appear.
a. Production Budget
Sales budget 600,000
Ending inventory 37,500
Less beginning inventory (24,600)
Production budget 612,900 cans
b.
Tea Purchases Budget (pounds)
Production budget 555,440.62
Ending inventory 33,984.38
Less beginning inventory (750.00)
Purchases 588,675.00
c. Sugar Purchases Budget (pounds)
Production budget 57,459.38
Ending inventory 3,515.63
Less beginning inventory (200.00)
Purchases 60,775.01
d. Cost of June Purchases
Cost of tea 2,060,363$
Cost of sugar 24,310
Purchases 2,084,673$
e. June Disbursements for June Purchases
June disbursement for June purchases 817,191.82$
A/P balance remaining at 6/30 $1,250,804.00
Solution