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Jasper Fruits Corporation wholesales peaches and oranges. Barbara Jasper is working with the company's accountant to prepare next year's budget. Ms. Jasper estimates that sales
Jasper Fruits Corporation wholesales peaches and oranges. Barbara Jasper is working with the company's accountant to prepare next year's budget. Ms. Jasper estimates that sales will increase 4 percent for peaches and 9 percent for oranges. The current year's sales revenue data follow. Peaches Oranges Total First Quarter $240,000 402,000 $642,000 Second Quarter $260,000 452,000 $712,000 Third Quarter $320,000 572,000 $892,000 Fourth Quarter $260,000 382,000 $642,000 Total $1,080,000 1,808,000 $2,888,000 Based on the company's past experience, cost of goods sold is usually 70 percent of sales revenue. Company policy is to keep 15 percent of the next period's estimated cost of goods sold as the current period's ending inventory. (Hint: Use the cost of goods sold for the first quarter to determine the beginning inventory for the first quarter.) Required a. Prepare the company's sales budget for the next year for each quarter by individual product. b. If the selling and administrative expenses are estimated to be $670,000, prepare the company's budgeted annual income statement. C. Ms. Jasper estimates next year's ending inventory will be $35,800 for peaches and $57,400 for oranges. Prepare the company's inventory purchases budgets for the next year, showing quarterly figures by product. Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Ms. Jasper estimates next year's ending inventory will be $35,800 for peaches. Prepare the company's inventory purchases budgets for the next year, showing quarterly figures by product. (Round your final answers to nearest whole dollar.) First Quarter Second Third Quarter Fourth Quarter Quarter $ 249,600 $ 270,400 $ 332,800 $ 270,400 Sales Cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases 0 0 0 0 $ 0 $ 0 $ 0 $ 0
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