Sales in April were $35,000. You forecast that monthly sales will increase 2.0% in May and 2.4% in June
	Notebook maintains inventory of $10,000 plus 25% of the sales revenue budgeted for the following month. Monthly purchases average 50% of sales revenue in that same month. Actual inventory on April 30 is $16,000. Sales budgeted for July are $65,000.
	Monthly salaries amount to $4,000. Sales commissions equal 4% of sales for that month. Combine salaries and commissions into a single figure.
	Other monthly expenses are as follows:

Rent expense

$3,000,paid as incurred

Depreciation expense

$600

Insurance expense

$400, expiration of prepaid amount

Income tax

20% of operating income

Requirement 1. Before completing the budgeted income statements, calculate the budgeted cost of goods sold for May and June using the inventory, purchases, and cost of goods sold budget format

Beginning inventory
+	0
=	0
-	0
=	Cost of goods sold

Notebook Office Supply
Budgeted Income Statements
May and June 2011
	May		June
	0			0
	0			0
	0			0
Operating expenses:
	0			0
	0			0
	0			0
	0			0
Operating income (loss)
	0			0
	0			0
	0			0
	0			0