Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year:
Expected monthly sales for April, May, June, and July are $220,000, $190,000, $310,000, and $90,000, respectively.
Cost of goods sold is 30 percent of expected sales.
CGC’s desired ending inventory is 20 percent of the following month’s cost of goods sold.
Monthly operating expenses are estimated to be:
Salaries: $30,000.
Delivery expense: 4 percent of monthly sales.
Rent expense on the warehouse: $4,500.
Utilities: $800.
Insurance: $175.
Other expenses: $260.
Required:
1. Compute the budgeted cost of purchases for each month in the second quarter.
2. Complete the budgeted income statement for each month in the second quarter.
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Citrus Girl Company (CGC) purchases quality citrus produce from local growers
Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year: 1. Expected monthly sales for April, May, June, and July are $190,000, $160,000, $280,000, and $60,000, respectively. 2. Cost of goods sold is 40 percent of expected sales. 3. CGC's desired...
Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year: 1. Expected monthly sales for April, May, June, and July are $240,000, $210,000, $330,000, and $110,000, respectively. 2. Cost of goods sold is 40 percent of expected sales. 3. CGC's desired...
Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year: 1. Expected monthly sales for April, May, June, and July are $320,000, $290,000, $410,000, and $190,000, respectively. 2. Cost of goods sold is 50 percent of expected sales. 3. CGC's desired...
Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Intemet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year 1. Expected monthly sales for April, May, June, and July are $140,000, $110,000, $230,000, and $50,000, respectively 2. Cost of goods sold is 15 percent of expected sales. 3. CGC's desired...
Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year: 1. Expected monthly sales for April, May, June, and July are $270,000, $240,000, $360,000, and $140,000, respectively. 2. Cost of goods sold is 35 percent of expected sales. 3. CGC's desired...
E8-20 (Algo) Preparing a Merchandise Purchases Budget and a Budgeted Income Statement [LO 8-3h, 8-5) Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year: 1. Expected monthly sales for April, May, June, and July are $300,000, $270,000, $390,000, and $170,000,...
E8-20 (Algo) Preparing a Merchandise Purchases Budget and a Budgeted Income Statement (LO 8-3h, 8-5] Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via t Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year: 1. Expected monthly sales for April, May, June, and July are $300,000, $270,000, $390,000, and $170,000...
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