218 ences 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 $260,000, $230,000, $350,000, and $130,000, respectively. 2. Cost of goods sold is 30 percent of expected sales. 3. CGC's desired ending inventory is 40 percent of the following month's cost of goods sold. 4. Monthly operating expenses are estimated to be: . Salaries: $34,000, Delivery expense: 8 percent of monthly sales. Rent expense on the warehouse: $6,500. Utilities: $1,300. Insurance: $240. Other expenses: $340. 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. :03 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 Sales Revenue Budgeted Income Statement For the Month Ending April 30 May 31 June 30 $ 260,000 $ 230,000 $ 350,000 78,000 69,000 105,000 182,000 161,000 245,000 Budgeted Cost of Goods Sold ht Budgeted Contribution Margin Budgeted Sales Returns and Allowances fences: Budgeted Gross Margin Budgeted Selling and Administrative Expenses Budgeted Interest Expense Budgeted Sales Returns and Allowances Budgeted Net Operating Income Required 1 Required 2 Compute the budgeted cost of purchases for each month in the second quarter. April May June Total Cost of Budgeted Purchases $ 74,400 $ 83,400 $ 78,600 Required 1 Required 2