Question
Jasper fruits Corporation wholesales peaches and oranges. Barbra 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. Barbra Jasper is working with the company's accountant to prepare next year's budget. Ms. Jasper estimates that sales with increase 6 percent for peaches and 11 percent for oranges. The current year's sales revenue data follows:
First Quarter Second Quarter Third Quarter Fourth Quarter Total
Peaches $237,000 $257,000 $317,000 $257,000 $1,068,000
Oranges 413,000 463,000 583,000 393,000 1,852,000
Total $650,000 $720,000 $900,000 $650,000 2,920,000
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.
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 $620,000, prepare the company's budgeted annual income statement.
C.) Ms. Jasper estimates next year's ending inventory will be $34,100 for peaches and $57,700 for oranges. Prepare the company's inventory purchases budgets for the next year, showing quarterly figures by product.
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