Question
Jasper Fruits Corporation wholesales peaches and oranges. Barbara Jasper is working with the companys accountant to prepare next years budget. Ms. Jasper estimates that sales
Jasper Fruits Corporation wholesales peaches and oranges. Barbara Jasper is working with the companys accountant to prepare next years budget. Ms. Jasper estimates that sales will increase 6 percent for peaches and 11 percent for oranges. The current years sales revenue data follow:
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | |||||||||||
| Peaches | $ | 239,000 | $ | 259,000 | $ | 319,000 | $ | 259,000 | $ | 1,076,000 | |||||
| Oranges | 418,000 | 468,000 | 588,000 | 398,000 | 1,872,000 | ||||||||||
| Total | $ | 657,000 | $ | 727,000 | $ | 907,000 | $ | 657,000 | $ | 2,948,000 | |||||
Based on the companys past experience, cost of goods sold is usually 65 percent of sales revenue. Company policy is to keep 20 percent of the next periods estimated cost of goods sold as the current periods ending inventory. (Hint: Use the cost of goods sold for the first quarter to determine the beginning inventory for the first quarter.)
Required
Prepare the companys sales budget for the next year for each quarter by individual product.
If the selling and administrative expenses are estimated to be $650,000, prepare the companys budgeted annual income statement.
Ms.Jasper estimates next years ending inventory will be $35,300 for peaches and $57,600 for oranges. Prepare the companys inventory purchases budgets for the next year, showing quarterly figures by product.
Required A
Required B
Required C1
Required C2
Prepare the companys sales budget for the next year for each quarter by individual product.
If the selling and administrative expenses are estimated to be $650,000, prepare the companys budgeted annual income statement.
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Required C1
Required C2
Ms. Jasper estimates next years ending inventory will be $35,300 for peaches. Prepare the companys inventory purchases budgets for the next year, showing quarterly figures by product. (Round your final answers to nearest whole dollar.)
Ms. Jasper estimates next years ending inventory will be $57,600 for oranges. Prepare the companys inventory purchases budgets for the next year, showing quarterly figures by product. (Round your final answers to nearest whole dollar.)
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Internal Auditing Assurance And Advisory Services
Authors: Kurt R. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Cris Riddle
5th Edition
1634541367, 978-1634541367
