a.
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Total
Peaches
Oranges
Total
b.
Budgeted Annual Income Statement
Sales revenue
Cost of goods sold
Gross profit
Selling & admin. expenses
Net income
c. Inventory purchases budget for peaches
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Sales
Cost of goods sold
Plus: desired ending inventory
Inventory needed
Less: beginning inventory
Required purchases
Inventory purchases budget for oranges
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Sales
Cost of goods sold
Plus: desired ending inventory
Inventory needed
Less: beginning inventory
Required purchases

Problem 14-22 Preparing budgets with multiple products LO Jasper Fruits Corporation wholesales peaches and oranges. Barbara Jasper is working with the com- CHE pany's accountant to prepare next year's budget. Ms. Jasper estimates that sales will increase 5 percent c. 1st $5 2no $15 for peaches and 10 percent for oranges. The current year's sales revenue data follow. First Quarter Third Quarter Fourth Quarter Peaches$80,000 Oranges 200,000 Total Second Quarter $100,000 225,000 $325,000 Total $ 480,000 $1,380,000 $160,000 285,000 $140,000 190,000 $330,000 900,000 924500 $330000 .30,000 $280,000 Based on the company's past experience, cost of goods sold is usually 60 percent of sales re ve- nue. Company policy is to keep 10 percent of the next period's estimated cost of goods sold as the current period's ending the beginning inventory for the first quarter.) Required inventory. (Hint: Use the cost of goods sold for the first quarter to determine a. Prepare the company's sales budget for the next year for each quarter by individual b. If the selling and administrative expenses are estimated to be $350,000, prepare the company's product budgeted annual income statement. inventory will be $10,000 for peaches and $20,000 for showing quarterly c. Ms. Jasper estimates next year's ending oranges. Prepare the company's inventory purchases budgets for the next figures by product. year