es 1. Expected monthly sales for April, May, June, and July are $290,000, 2. Cost of goods sold is 40 percent of expected sales. 3. CGC's desired ending inventory is 30 percent of the following month 4. Monthly operating expenses are estimated to be: o Salaries: $37,000. • Delivery expense: 6 percent of monthly sales. • Rent expense on the warehouse: $8,000. • Utilities: $1,600. o Insurance: $180. • Other expenses: $280. Required: 1. Compute the budgeted cost of purchases for each month in the sec 2. Complete the budgeted income statement for each month in the sec Complete this question by entering your answers in the tabs belc
es 1. Expected monthly sales for April, May, June, and July are $290,000, 2. Cost of goods sold is 40 percent of expected sales. 3. CGC's desired ending inventory is 30 percent of the following month 4. Monthly operating expenses are estimated to be: o Salaries: $37,000. • Delivery expense: 6 percent of monthly sales. • Rent expense on the warehouse: $8,000. • Utilities: $1,600. o Insurance: $180. • Other expenses: $280. Required: 1. Compute the budgeted cost of purchases for each month in the sec 2. Complete the budgeted income statement for each month in the sec Complete this question by entering your answers in the tabs belc
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Expected monthly sales for April, May, June, and July are $290,000, $260,000, $380,000, and $160,000, respectively.
2. Cost of goods sold is 40 percent of expected sales.
3. CGC's desired ending inventory is 30 percent of the following month's cost of goods sold.
4. Monthly operating expenses are estimated to be:
o Salaries: $37,000.
• Delivery expense: 6 percent of monthly sales.
Rent expense on the warehouse: $8,000.
• Utilities: $1,600.
o Insurance: $180.
o Other expenses: $280.
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.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the budgeted cost of purchases for each month in the second quarter.
April
May
June
Total Cost of Budgeted Purchases
< Required 1
Required 2 >
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