The Managerial Accountant at the Holly and Ivy Tree Store

question 159

Essay

The managerial accountant at the Holly and Ivy Tree Store reported that the company anticipates sales of $600,000 in September and October, $625,000 in November, $635,000 in December, and note that the sales figure is $640,000 in January. The August sales revenue was equal to the September sales revenue. The managerial accountant establishes the prices at the Holly and Ivy Tree Store on its merchandise to ensure the company earns 45% gross profit on its sales. The managerial accountant expects the ending inventory at the store to equal 12% of the next month's cost of goods sold.
Compute the COSG, inventory, and purchases budget for October, November, and December.

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Definitions:

Employee Responsibility

Obligations and duties that an employee is expected to fulfill as part of their role within an organization.

Payroll Items

Components that make up an employee's pay, including wages, salaries, bonuses, deductions, and taxes.

Employer Responsibility

The legal and ethical obligations that an employer has towards their employees, including providing a safe working environment, fair wages, and respecting labor laws.

Employee Responsibility

The duties and obligations employees have towards their employer and workplace.