In May 2010, the budget committee of Dalby Stores assembles the following data in preparation of budgeted

Question:

In May 2010, the budget committee of Dalby Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June.

1. Expected sales: June $500,000, July $600,000.

2. Cost of goods sold is expected to be 70% of sales.

3. Desired ending merchandise inventory is 40% of the following (next) month’s cost of goods sold.

4. The beginning inventory at June 1 will be the desired amount.

Instructions

(a) Compute the budgeted merchandise purchases for June.

(b) Prepare the budgeted income statement for June through gross profit.

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Accounting Principles

ISBN: 978-0470533475

9th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Question Posted: Sep 19, 2011 12:25 PM

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In May 2010, the budget committee of Dalby Stores assembles the following data in preparation of budgeted

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a DALBY STORES Merchandise Purchases Budget For the Month Ending June 30 2010 Budgeted cost ...View the full answer

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