ces PA8-6 (Algo) Preparing Operating Budgets for a Merchandising Firm [LO 8-5] Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Budgeted unit sales Quarter 1 Quarter 2 Quarter 3 Quarter 4 47,000 Each T-shirt is expected to sell for $22. 74,000 37,000 The purchasing manager buys the T-shirts for $9 each. 74,000 . The company needs to have enough T-shirts on hand at the end of each quarter to fill 32 percent of the next quarter's sales demand. ⚫ Selling and administrative expenses are budgeted at $94,000 per quarter plus 10 percent of total sales revenue. . Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4. Determine selling and administrative expense for each quarter. 5. Complete the budgeted income statement for each quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Determine budgeted sales revenue for each quarter. Budgeted Sales Revenue Quarter 1 Quarter 2 Quarter 3 Required 2 >
ces PA8-6 (Algo) Preparing Operating Budgets for a Merchandising Firm [LO 8-5] Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Budgeted unit sales Quarter 1 Quarter 2 Quarter 3 Quarter 4 47,000 Each T-shirt is expected to sell for $22. 74,000 37,000 The purchasing manager buys the T-shirts for $9 each. 74,000 . The company needs to have enough T-shirts on hand at the end of each quarter to fill 32 percent of the next quarter's sales demand. ⚫ Selling and administrative expenses are budgeted at $94,000 per quarter plus 10 percent of total sales revenue. . Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4. Determine selling and administrative expense for each quarter. 5. Complete the budgeted income statement for each quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Determine budgeted sales revenue for each quarter. Budgeted Sales Revenue Quarter 1 Quarter 2 Quarter 3 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
provide A and B both answer with explanation
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PA8-6 (Algo) Preparing Operating Budgets for a Merchandising Firm [LO 8-5]
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following information:
Budgeted unit sales
Quarter 1 Quarter 2 Quarter 3 Quarter 4
47,000
Each T-shirt is expected to sell for $22.
74,000
37,000
The purchasing manager buys the T-shirts for $9 each.
74,000
. The company needs to have enough T-shirts on hand at the end of each quarter to fill 32 percent of the next quarter's sales
demand.
⚫ Selling and administrative expenses are budgeted at $94,000 per quarter plus 10 percent of total sales revenue.
.
Required:
1. Determine budgeted sales revenue for each quarter.
2. Determine budgeted cost of merchandise purchased for each quarter.
3. Determine budgeted cost of good sold for each quarter.
4. Determine selling and administrative expense for each quarter.
5. Complete the budgeted income statement for each quarter.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Required 4
Required 5
Determine budgeted sales revenue for each quarter.
Budgeted Sales Revenue
Quarter 1
Quarter 2
Quarter 3
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb9da89e-c751-4f08-ac94-71e574afd0f6%2Fd6bbeebc-4700-4106-8a9e-13d4c43f152f%2Fg7p6q9s_processed.png&w=3840&q=75)
Transcribed Image Text:ces
PA8-6 (Algo) Preparing Operating Budgets for a Merchandising Firm [LO 8-5]
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following information:
Budgeted unit sales
Quarter 1 Quarter 2 Quarter 3 Quarter 4
47,000
Each T-shirt is expected to sell for $22.
74,000
37,000
The purchasing manager buys the T-shirts for $9 each.
74,000
. The company needs to have enough T-shirts on hand at the end of each quarter to fill 32 percent of the next quarter's sales
demand.
⚫ Selling and administrative expenses are budgeted at $94,000 per quarter plus 10 percent of total sales revenue.
.
Required:
1. Determine budgeted sales revenue for each quarter.
2. Determine budgeted cost of merchandise purchased for each quarter.
3. Determine budgeted cost of good sold for each quarter.
4. Determine selling and administrative expense for each quarter.
5. Complete the budgeted income statement for each quarter.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Required 4
Required 5
Determine budgeted sales revenue for each quarter.
Budgeted Sales Revenue
Quarter 1
Quarter 2
Quarter 3
Required 2 >
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