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In May 2020, the budget committee of Big Jim Stores assembles the following data for preparing the merchandise purchases budget for the month of June:
In May 2020, the budget committee of Big Jim Stores assembles the following data for preparing the merchandise purchases budget for the month of June:
1. | Expected sales: June $482,000; July $575,000. | ||
2. | Cost of goods sold is expected to be 75% of sales. | ||
3. | Desired ending merchandise inventory is 30% of the following months cost of goods sold. | ||
4. | The beginning inventory at June 1 will be the desired amount. |
Calculate the budgeted merchandise purchases for June.
Budgeted merchandise purchases | $ |
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Prepare the budgeted income statement for June through gross profit on sales.
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