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:

Expected monthly sales for April, May, June, and July are $$160,000,$ $$130,000,$ $$250,000,$ and $$70,000,$ respectively.

Cost of goods sold is $50$ percent of expected sales.

CGC$$s desired ending inventory is $60$ percent of the following month$$s cost of goods sold.

Monthly operating expenses are estimated to be:

Salaries: $$35,000.$

Delivery expense: $5$ percent of monthly sales.

Rent expense on the warehouse: $$3,500.$

Utilities: $$700.$

Insurance: $$360.$

Other expenses: $$460.$

Required:

Compute the budgeted cost of purchases for each month in the second quarter.

Complete the budgeted income statement for each month in the second quarter.