The budget committee of Coronado Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2022.

1.		Sales for May are expected to be $880,000. Sales in June and July are expected to be 5% higher than the preceding month.
2.		Cost of goods sold is expected to be 75% of sales.
3.		Company policy is to maintain ending merchandise inventory at 10% of the following month’s cost of goods sold.
4.		Operating expenses are estimated to be as follows:

Sales salaries		$28,400		per month
Advertising		6	%	of monthly sales
Delivery expense		2	%	of monthly sales
Sales commissions		5	%	of monthly sales
Rent expense		$6,020		per month
Depreciation		$830		per month
Utilities		$660		per month
Insurance		$590		per month

5.

Interest expense is $2,000 per month. Income taxes are estimated to be 20% of income before income taxes.

Prepare budgeted multiple-step income statements for each month in columnar form. Show in the statements the details of cost of goods sold.