Question

Prepare the following budgets for November and December: 1. Sales budget 2. Cost of goods sold, inventory, and purchases budget 3. Operating expense budget 4. Budgeted income statement

Answer 1

	Scannell Corner Shoppe
	Sales Budegt	October	November	December	January
1	Sales	$ 260,000.00	$    280,800.00	$ 351,000.00	$ 260,000.00	{a}
	Gross profit (30% of sales)	$   78,000.00	$      84,240.00	$ 105,300.00	$   78,000.00	{b}
	Cost of goods sold	$ 182,000.00	$    196,560.00	$ 245,700.00	$ 182,000.00	{a}-{b}
	Ending inventory (14,000+20% of the next month COGS)	$   50,400.00	$      63,140.00	$   50,400.00
	Scannell Corner Shoppe
2	Cost of goods sold, Inventory and purchases budget	November	December
	Cost of goods sold	$ 196,560.00	$    245,700.00
	Add: Ending inventory	$   63,140.00	$      50,400.00
	Total invetory	$ 259,700.00	$    296,100.00
	Less: Beginning Inventory	$   50,400.00	$      63,140.00
		$ 209,300.00	$   232,960.00