Answered step by step
Verified Expert Solution
Question
1 Approved Answer
135 5 points Shamrock Shades operates in mall kiosks throughout the southwestern United States. Shamrock purchases sunglasses from bulk discounters and sells the sunglasses in
135 5 points Shamrock Shades operates in mall kiosks throughout the southwestern United States. Shamrock purchases sunglasses from bulk discounters and sells the sunglasses in the mall kiosks. Shamrock is in the process of budgeting for the coming year and has projected sales of $390,000 for January, $470,000 for February, $630,000 for March, and $670,000 for April. Shamrock's desired ending inventory is 50 percent of the following month's cost of goods sold. Cost of goods sold is expected to be 40 percent of sales. Required: Compute the required purchases for each month of the first quarter (January-March). 10 10 ja Print References Required Purchases January Fabniary March 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, respectively 2. Cost of goods sold is 45 percent of expected sales. 3. CGC's desired ending inventory is 35 percent of the following month's cost of goods sold. 4. Monthly operating expenses are estimated to be: Salaries: $38,000 Delivery expense: 7 percent of monthly sales Rent expense on the warehouse: $8,500 Utilities: $1,700 Insurance: $210. Other expenses: $310 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the budgeted cost of purchases for each month in the second quarter. Total cost of budgeted purchases April Required May June Required 2 > 1. Expected monthly sales for April, May, June, and July are $300,000, $270,000, $390,000, and $170,000, respectively. 2. Cost of goods sold is 45 percent of expected sales. 3. CGC's desired ending Inventory is 35 percent of the following month's cost of goods sold. 4. Monthly operating expenses are estimated to be: Salaries: $38,000 Delivery expense: 7 percent of monthly sales Rent expense on the warehouse: $8,500 Utilities: $1,700 Insurance: $210 Other expenses: $310 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the budgeted income statement for each month in the second quarter. CITRUS GIRL COMPANY Budgeted Income Statement For the Month Ending. Budgeted Gross Margin + April 30 May 31 June 30 Budgeted Net Operating Income < Required 1 Required 2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started