Exercise 21-20 (Part Level Submission)

In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June.

1.		Expected sales: June $501,200, July $617,100.
2.		Cost of goods sold is expected to be 75% of sales.
3.		Desired ending merchandise inventory is 30% of the following (next) months cost of goods sold.
4.		The beginning inventory at June 1 will be the desired amount.

Prepare the budgeted multiple-step income statement for June through gross profit.

GRAND STORES Budgeted Income Statement

For the Quarter Ending June 30, 2017For the Month Ending June 30, 2017June 30, 2017

Required Merchandise PurchasesUnits to Be ProducedTotal Materials RequiredBudgeted Cost of Goods SoldBudgeted Gross ProfitBeginning Merchandise InventoryExpected SalesDesired Ending Merchandise InventoryBudgeted Cost of Goods Available for SaleDirect Materials Purchases

$

Expected SalesUnits to Be ProducedTotal Materials RequiredRequired Merchandise PurchasesDesired Ending Merchandise InventoryBudgeted Cost of Goods SoldBudgeted Cost of Goods Available for SaleBeginning Merchandise InventoryDirect Materials PurchasesBudgeted Gross Profit

Budgeted Cost of Goods SoldDesired Ending Merchandise InventoryTotal Materials RequiredExpected SalesUnits to Be ProducedBeginning Merchandise InventoryRequired Merchandise PurchasesBudgeted Gross ProfitBudgeted Cost of Goods Available for SaleDirect Materials Purchases

Beginning Merchandise InventoryDirect Materials PurchasesBudgeted Cost of Goods SoldRequired Merchandise PurchasesBudgeted Cost of Goods Available for SaleUnits to Be ProducedExpected SalesTotal Materials RequiredBudgeted Gross ProfitDesired Ending Merchandise Inventory

Budgeted Cost of Goods Available for SaleTotal Materials RequiredExpected SalesBudgeted Gross ProfitBeginning Merchandise InventoryDirect Materials per UnitDesired Ending Merchandise InventoryDirect Materials PurchasesUnits to Be ProducedRequired Merchandise Purchases

Budgeted Cost of Goods Available for SaleDirect Materials per UnitBudgeted Gross ProfitBeginning Merchandise InventoryUnits to Be ProducedDesired Ending Merchandise InventoryDirect Materials PurchasesRequired Merchandise PurchasesTotal Materials RequiredExpected Sales

Desired Ending Merchandise InventoryBudgeted Cost of Goods SoldBudgeted Cost of Goods Available for SaleBeginning Merchandise InventoryDirect Materials PurchasesUnits to Be ProducedBudgeted Gross ProfitRequired Merchandise PurchasesTotal Materials RequiredExpected Sales

Expected SalesBeginning Merchandise InventoryBudgeted Cost of Goods SoldTotal Materials RequiredDesired Ending Merchandise InventoryBudgeted Gross ProfitDirect Materials PurchasesBudgeted Cost of Goods Available for SaleRequired Merchandise PurchasesUnits to Be Produced

$