Question
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.
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 $519,900, July $627,200.
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.
Budgeted cost of goods sold= $389,925
Desired Ending Merchandise Inventory= 141,120
Total Materials Requires= 531,045
Beginning Merchandise Inventory: 116,978
Required Merchandise Inventory: 414.067
Prepare the budgeted multiple-step income statement for June through gross profit.
GRAND STORES Budgeted Income Statement
For the Month Ending June 30, 2017
________________ $_________________
________________
________________ $_________________
________________ $_________________
________________ $_________________
________________ $_________________
________________ $_________________
________________ $_________________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started