The budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2017

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

*Problem 9-5A (Part Level Submission) The budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2017. 1. Sales for May are expected to be $805,000. 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 Advertising Delivery expense Sales commissions $28,400 6 % 2% 5% $6,020 $830 per month of monthly sales of monthly sales of monthly sales per month per month Rent expense Depreciation Utilities per month $660 $590 Insurance per month 5. Interest expense is $2,000 per month. Income taxes are estimated to be 30% of income before income taxes. *(b) Your answer is partially correct. Try again. Prepare budgeted multiple-step income statements for each month in columnar form. Show in the goods sold. (Round answers to 0 decimal places, e.g. 2,575.) SUPPAR COMPANY San Miguel Store Budgeted Income Statement For the Months of May and June, 2017| May June sales $805000 $1845250 Cost of Goods Sold 9760375 9783394 Beginning Inventory] Purchases 7606769 7637108 700502 x Cost of Goods Sold 1667144 Cost of Goods Sold 603750 633938 Gross Profit 201250 211312 dddddddidiCOTTO bbdddddddddddd