In May 2012, the budget committee of Moseby Stores assembles the following data in preparation of budgeted
Question:
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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Step by Step Answer:
a MOSEBY STORES Merchandise Purchases Budget For the Month Ending June 30 2012 Budgeted cost of ...View the full answer
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Related Book For 
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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