The accountant at Supreme Audio resigned while he was in the midst of preparing the budget for 2015.
| Assumptions: |
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Sales will increase by 25 percent over 2014. |
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Cost of sales equals 60 percent of sales. |
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For 2015, ending inventory should equal 40 percent of the cost of sales for the next quarter. |
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Sales in the first quarter of 2016 will be $300,000. |
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The accountant's work papers indicated the following:
Fill in the missing information to determine the sales and purchases budgets for 2015.
| Budgeted Sales and Inventory Purchases for 2015 |
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Quarter 1 |
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Quarter 2 |
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Quarter 3 |
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Quarter 4 |
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Total |
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| Sales in 2014 |
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$236,000 |
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$303,000 |
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$280,000 |
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$364,000 |
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$1,183,000 |
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| Expected sales in 2015 |
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$295,000 |
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$
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$
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$
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$
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| Cost of sales |
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$177,000 |
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$
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$
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$
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$
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| Beginning inventory |
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66,900 |
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$
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$
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$
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$
|
| Ending inventory |
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$
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$
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$
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$
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|
$
|
| Purchases |
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$
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$
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$
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$
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$ |