In May 2014, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June.
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Expected sales: June $529,900, July $627,900. |
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Cost of goods sold is expected to be 75% of sales. |
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Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold. |
| 4. |
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The beginning inventory at June 1 will be the desired amount. |
(a) Compute the budgeted merchandise purchases for June. (Round answers to the nearest whole dollar, e.g. 5,275.)
GRAND STORES
Merchandise Purchases Budget
For the Month Ending June 30, 2014 |
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(b) Prepare the budgeted income statement for June through gross profit.
GRAND STORES
Budgeted Income Statement
For the Month Ending June 30, 2014 |
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Sales
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$
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Cost of goods sold
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Gross profit
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$
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