The budget committee of Fashion's R Us$,$ an upscale women's clothing retailer, has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and

June.

$($Click the icon to view the information to prepare the budget.$)$

Requirement

Prepare Fashion's R Us$\text{'}$ budgeted income statements for May and June. Show cost of goods sold computations.

Before completing the budgeted income statements, compute the budgeted cost of goods sold for May and June. $($Round your answers to the nearest whole dollar.$)$

Data table

a$.$ Sales in April were $$40,000.$ You forecast that monthly sales will increase $10\%$ in May and an

additional $3\%$ in June.

b$.$ Fashion's R Us maintains inventory of $$9,000$ plus $20\%$ of the sales revenues budgeted for the

following month. Monthly purchases average $50\%$ of sales revenue in that same month. Actual

inventory on April $30$ is $$17,800.$ Sales budgeted for July are $$60,000.$

c$.$ Monthly salaries amount to $$6,000.$ Sales commissions equal $10\%$ of sales for that month.

Combine salaries and commissions into a single figure.

d$.$ Other monthly expenses are as follows: