0.50 points Intemet across the United States. To keep costs down, coc maintains

Question

0.50 points Intemet across the United States. To keep costs down, coc maintains Cus Git Company (COC) purchases quality ctrus produce from local growers and sells the produce via the but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year espect ely Expected monthly sales Apn May, Jue. and Jey are S160 000. S130.000 $250,000, and $70,000 1. Expected 2 Cost of goods sokd is 50 peroent of expected sales 4 Montly operating expenses are estimated to be Salanes: $35000 Delivery expense: 5 peroent of montly sales Rent expense on the warehouse $3.500 Insurance 5300 Oteher expenses: 40 1. Compute the budgeted confases for each moneh in the second quarter 2 Compliete the budgeted income tatement for ecn month in the second quaer 4 ae optioncommand command option

Explanation / Answer

Solution 1:

Solution 2:

Budgeted cost of purchases - Citrus Girl Company Particulars April May June July Budgeted Sales $160,000.00 $130,000.00 $250,000.00 $70,000.00 Budgeted Cost of Goods Sold (50% of Sales) $80,000.00 $65,000.00 $125,000.00 $35,000.00 Add: Desired ending merchandise inventory (60% of next month COGS) $39,000.00 $75,000.00 $21,000.00 Total Needs $119,000.00 $140,000.00 $146,000.00 Less: Beginning inventory $48,000.00 $39,000.00 $75,000.00 Required purchases $71,000.00 $101,000.00 $71,000.00

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