The following information is available for Pioneer Company:

• Sales price per unit is $110.
• November and December, sales were budgeted at 3,040 and 3,530 units, respectively.
• Variable costs are 12 percent of sales (4 percent commission, 3 percent advertising, 5 percent shipping).
• Fixed costs per month are sales salaries, $5,300; office salaries, $2,300; depreciation, $2,400; building rent, $3,700; insurance, $1,700; and utilities, $900.

Required:

Determine Pioneer's budgeted selling and administrative expenses for November and December.

Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse, but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year:

1. Expected monthly sales for April, May, June, and July are $260,000, $230,000, $350,000, and $130,000, respectively.
2. Cost of goods sold is 30 percent of expected sales.
3. CGCs desired ending inventory is 40 percent of the following months cost of goods sold.
4. Monthly operating expenses are estimated to be:

• Salaries: $34,000
• Delivery expense: 8 percent of monthly sales
• Rent expense on the warehouse: $6,500
• Utilities: $1,300
• Insurance: $240
• Other expenses: $340

Required:

1. Compute the budgeted cost of purchases for each month in the second quarter.

2. Complete the budgeted income statement for each month in the second quarter.