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 $508,600, July $614,600.2.Cost of goods sold is expected to be 75% of sales.3.Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold.4.The beginning inventory at June 1 will be the desired amount.

(b)

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

GRAND STORES

Budgeted Income Statement

June 30, 2017

___________ $_________

___________

___________ $_________

___________ $_________

___________ $_________

___________ $_________

___________ $_________

___________ $_________

Optional Row Titles:

• Budgeted Cost of Goods Available for Sale
• Budgeted Gross Profit
• Expected Sales
• Direct Materials Purchases
• Desired Ending Merchandise Inventory
• Required Merchandise Purchases
• Beginning Merchandise Inventory
• Total Materials Required
• Units to Be Produced
• Budgeted Cost of Goods Sold