In May 2020, the budget committee of Johnson Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June.
1. Expected sales: June $501,000, July $607, 400
2. Cost of goods sold is expected to be 75% of sales.
3. Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold.
4. The beginning inventory at June 1 will be the desired amount.
-Compute the budgeted merchandise purchases for June: (Complete a Merchandise Purchase Budget).
Budgeted Cost of Goods Sold:
Add: Desired ending merchandise inventory:
Total materials required:
Less: Beginning merchandise inventory:
Required merchandise purchases:
-Prepare the budgeted multiple-step income statement for June through gross profit:
Sales:
Cost of goods sold:
Gross Profit:
Solutions:
Merchandise Purchase Budget | |
Budgeted Cost of Goods Sold ($501000*75%) | 375750 |
Add: Desired ending merchandise inventory:($607400*75%*30%) | 136665 |
Total materials required: | 512415 |
Less: Beginning merchandise inventory: ($375750*30%) | 112725 |
Required merchandise purchases: | 399690 |
Merchandise Purchase Budget budgeted multiple-step income statement | |
Sales: | 501000 |
Cost of goods sold: | 375750 |
Gross Profit: | 125250 |
In May 2020, the budget committee of Johnson Stores assembles the following data in preparation of...
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