Question

all parts please

value 5.00 points PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO8-5,8-3a, f, g, h Red Canyon T-shit Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information Quarter 1 48,000 Quarter 2 Quarter 3 38,000 Quarter 4 70.000 Budgeted Unit Sales 70,000 Each T-shirt is expected to sell for $23 The purchasing manager buys the T-shirts for 59 each The company needs to have enough T-shirts on hand at the end of each quarter to fll 33 percent of the nexdt quarter's sales demand Selling and administrative expenses are budgeted at $96,000 per quarter plus 12 percent of total sales revenue. Required 1. Determine budgeted sales revenue for each quarter are ३ Quarter 1 Quarter 3 Budgeled Sales Revenue 2. Detemine budgeted cost of merchandise purchased for each quarter Quarter 1 Quarter 3 Quarter 2 Budgeted Cost of Merhandse Pushased 3. Determine budgeted cost of good sold for each quarter Quarter 3 Quarter 1 Quarter 2 Budgeted Cost oft Goods Sol 4. Detemine seling and administr ative expenses for each quarter. Quarter 3 1 Quarter 1 Quarter 2 Budgeted Seling and Admnatratve Expensss

Answer 1

Solution t o The southwestern crited States The sales manager has provided a sales forecast for the coming a year year the shirt is expected Pric= 23 Particular Budgeled Quarter i sales Revenue & 4980012:3 : und scals x Porice : 1187.000 Quarter a Budgeled sales = 78000 X 23 Revenu unb Sale Xpois = 1,794.000 Quader is Burbeled. Sales ....39000* 23 Revenues .= '897 800 -

o cost i Merchandise Purchased = : open stock & Sales - close stock Neat quarter sals : 33%. Quarter I open stock zo .. . . Sabes 249,000 = 0 +69000 -678 000X 33) 50 +4900 DOX 331 1001 49000- 25,740 ni erchardesed 23,480 Purchared = 23 480x9 SA ? 211320 Quarter of na 251,740 +78,000-(39000 x 33 →°C to 740 -12,870 z 40,870

= 90870*9 7. z. 817 830 Quartes 3 12 870 + 39.000 - [78000x 331 100 3.51870 - 25740 26. 130 = 2574089 Purchased. 3 231,660° ③ Quarters at open stock & Purchase - close stock 0+ 9 11 320 - ( 78 000 kmJeg 23.211 320 - 231660 .. Coas - - 20340

Quarter - 2 (6X OLS71) - Otsabt ont so 116610-115830 est a Qu LOUNA . 12870 + 817830 -(25720x4] :>830100-231660 2599040 Budaling selling a. Admentratie 96000 Sales Renue 12esor: Quants - 96000+12 12%=117600 141,120 + 96000 is 237 120

Quarter a : 6 ooo + 12 183 2 000 o бooo +22 464 2 1 1 464 uals -3 6000 +12 - Q36 оо 6 сборь 1 92 64 9 6600 + 11 2, 320 * - 2.08 320 Budgled Grow margie Qucirl - . — 1, 116боо Cols - 20 340 - 1,155 660)

Quartes - ross Margen 1:872.00 Cours 7 - 780 186,420 Quarters - * Cross" Margin = 936000 - Cors:- 599040 . 3 336,960 Budgeled Not open. Income 2-37120 i Quarter i 31155660 - 918 540 Quarters = 186 420 118 hole open income = - 67 956

6 Quartos -3 336 960 @ Quake 3 = -208 320 . .. czp. 128.640.