Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The budget committee of Hilton Fashions, an upscale women's clothing retailer, has assembled the following data. As the business manager, you must prepare the budgeted

image text in transcribed
image text in transcribed
image text in transcribed
The budget committee of Hilton Fashions, 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 Hilton Fashions' 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.) May June Sales revenue 54,000 Beginning inventory 21,800 Purchases Ending inventory Cost of goods sold Now complete the budgeted income statements for May and June (Round your answers to the nearest whole dollar.) Hilton Fashions he Budgeted Income Statements For the Months Ended May 31 and June 30 ti Choose from any list or enter any number in the input fields and then continue to the next question. i Data Table a. Sales in April were $50,000. You forecast that monthly sales will increase 8% in May and an additional 4% in June. b. Hilton Fashions maintains inventory of $11,000 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 $21,800. Sales budgeted for July are $55,000. c. Monthly salaries amount to $3,000. Sales commissions equal 5% of sales for that month. Combine salaries and commissions into a single figure. d. Other monthly expenses are as follows: Rent expense Depreciation expense Insurance expense. $3,200, paid as incurred $500 $300, expiration of prepaid amount 20% of operating income Income tax Print Done The budget committee of Hilton Fashions, 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 Hilton Fashions' budgeted income statements for May and June. Show cost of goods sold computations. Hilton Fasnions Budgeted Income Statements For the Months Ended May 31 and June 30 May June Sales revenue Cost of goods sold Gross profit Operating expenses Salaries and commission expense Rent expense Depreciation expense Insurance expense Operating income U he Income tax expense arth Choose from any list or enter any number in the input fields and then continue to the next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions