The budget committee of Ruler Office Supply has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and June. (Click the icon to view the information to prepare the budget) Before completing the budgeted income statements, compute the budgeted cost of goods sold for May and June (Round your answers to the nearest whole dollar.) June Beginning inventory Purchases Ending inventory Cost of goods available for sale Cost of goods sold May 21680 Data table a Sales in April were $44,000. You forecast that monthly sales will increase 10% in May and 2% in June - X b. Ruler Office Supply maintains inventory of $12,000 plus 20% of the sales revenues budgeted for the following month. Monthly purchases average 50% of sales revenue in that same month. Actual inventory on April 30 is $21,680 Sales budgeted for July are $55.000 c. Monthly salaries amount to $5,000 Sales commissions equal 9% of sales for that month. Combine salaries and commissions into a single figure. d. Other monthly expenses are as follows Rent expense Depreciation expense Insurance expense Income tax $3.200, paid as incurred $900 $400, expiration of prepaid amount 20% of operating income
The budget committee of Ruler Office Supply has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and June. (Click the icon to view the information to prepare the budget) Before completing the budgeted income statements, compute the budgeted cost of goods sold for May and June (Round your answers to the nearest whole dollar.) June Beginning inventory Purchases Ending inventory Cost of goods available for sale Cost of goods sold May 21680 Data table a Sales in April were $44,000. You forecast that monthly sales will increase 10% in May and 2% in June - X b. Ruler Office Supply maintains inventory of $12,000 plus 20% of the sales revenues budgeted for the following month. Monthly purchases average 50% of sales revenue in that same month. Actual inventory on April 30 is $21,680 Sales budgeted for July are $55.000 c. Monthly salaries amount to $5,000 Sales commissions equal 9% of sales for that month. Combine salaries and commissions into a single figure. d. Other monthly expenses are as follows Rent expense Depreciation expense Insurance expense Income tax $3.200, paid as incurred $900 $400, expiration of prepaid amount 20% of operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:The budget committee of Ruler Office Supply has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and June.
(Click the icon to view the information to prepare the budget)
Before completing the budgeted income statements, compute the budgeted cost of goods sold for May and June. (Round your answers to the nearest whole dollar.)
June
Beginning inventory
Purchases
Ending inventory
Cost of goods available for sale
Cost of goods sold
May
21680
Data table
can
a. Sales in April were $44,000. You forecast that monthly sales will increase 10%
in May and 2% in June.
Rent expense
Depreciation expense
Insurance expense
income tax
b. Ruler Office Supply maintains inventory of $12,000 plus 20% of the sales
revenues budgeted for the following month. Monthly purchases average 50% of
sales revenue in that same month. Actual inventory on April 30 is $21,680
Sales budgeted for July are $55,000.
c. Monthly salaries amount to $5,000. Sales commissions equal 9% of sales for
that month. Combine salaries and commissions into a single figure.
d. Other monthly expenses are as follows:
Print
$3,200, paid as incurred
$900
$400, expiration of prepaid amount
20% of operating income
- X
Done
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