Question
I just dont know how to finish number 5 but everything else is right Red Canyon T-shirt Company operates a chain of T-shirt shops in
I just dont know how to finish number 5 but everything else is right
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted Unit Sales 31,000 51,000 25,500 51,000 Each T-shirt is expected to sell for $21. The purchasing manager buys the T-shirts for $8 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 31 percent of the next quarters sales demand. Selling and administrative expenses are budgeted at $62,000 per quarter plus 18 percent of total sales revenue.
Quarter 1 Quarter 2Quarter 3 Budgeted Sales Revenue 651,000 1,071,000 $ 535,500 2. Determine budgeted cost of merchandise purchased for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Cosof Merchandise Purchased $ 297,600$ 344,760267,240 3. Determine budgeted cost of good sold for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Cost of Goods ?ski S 248,000$ 408,000 204,000 4. Determine selling and administrative expenses for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Selling and Administrative $ 179,180254,780 $ 158,390 5. Complete the budgeted income statement for each quarter. RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 1 Cuarter 2 Quarter 3 Budgeted Gross Margin Budgeted Net Operating Income
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