The budget committee of Clipboard Office Supply has assembled the following data
ID: 2480730 • Letter: T
Question
The budget committee of Clipboard Office Supply has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and June 2011.
Requirement
Prepare Clipboard Office Supply’s budgeted income statements for May and June. Show cost of goods sold computations. Round all amounts to the nearest $100. (Round amounts ending in $50 or more upward, and amounts ending in less than $50 downward.) For example, budgeted May sales are $51,000 ($50,000 x 1.02), and June sales are $52,200 ($51,000 x 1.024)
Explanation / Answer
Particulars
April
May
June
July
Sales
50,000
51,000
52,224
65,000
Beginning Inventory
13,000
22,056
Add: Purchases
25,500
26,112
Less: Ending Inventory
22,056
25,250
Cost of Goods Sold
16,444
22,918
Particulars
May
June
Sales
51,000
52,224
Less: Cost Of Good Sold
16,444
22,918
Gross Profit
34,556
29,306
Less:
Salaries and sales Commision
5,040
5,089
Rent Expense
2,600
2,600
Depreciation
300
300
Insurance Expense
200
200
Total Adminitrative Expenses
8,140
8,189
Operating Income
26,416
21,117
Less : Tax 20%
5,283
4,223
Net Operating Income
21,133
16,894
Particulars
April
May
June
July
Sales
50,000
51,000
52,224
65,000
Beginning Inventory
13,000
22,056
Add: Purchases
25,500
26,112
Less: Ending Inventory
22,056
25,250
Cost of Goods Sold
16,444
22,918
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