Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 31,000 62,000 Budgeted Unit Sales 62,000 1,000 Each T-shirt is expected to sell for $16. The purchasing manager buys the T-shirts for $6 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 26 percent of the next quarter's sales demand Selling and administrative expenses are budgeted at $82,000 per quarter plus 12 percent of total sales revenue. 3. Determine budgeted cost of good sold for each quarter Quarter 1 Quarter 2 Quarter 3 Budgeted Cost of Goods Sold 4. Determine selling and administrative expenses for each quarter Quarter 1 Quarter 2 Quarter 3 Budgeted Selling and Administrative Expenses 5. Complete the budgeted income statement for each quarter RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 3 Quarter 1 Quarter 2 Budgeted Gross Margin Budgeted Net Operating Income