Mulligan Fruits Corporation wholesales peaches and oranges. Kimberly Priest is w
ID: 2487595 • Letter: M
Question
Mulligan Fruits Corporation wholesales peaches and oranges. Kimberly Priest is working with the company’s accountant to prepare next year’s budget. Ms. Priest estimates that sales will increase 3 percent for peaches and 8 percent for oranges. The current year’s sales revenue data follow.
Based on the company’s past experience, cost of goods sold is usually 65 percent of sales revenue. Company policy is to keep 10 percent of the next period’s estimated cost of goods sold as the current period’s ending inventory. (Hint: Use the cost of goods sold for the first quarter to determine the beginning inventory for the first quarter.)
Prepare the company’s sales budget for the next year for each quarter by individual product.
If the selling and administrative expenses are estimated to be $660,000, prepare the company’s budgeted annual income statement.
Ms. Priest estimates next year’s ending inventory will be $34,900 for peaches and $56,100 for oranges. Prepare the company’s inventory purchases budgets for the next year, showing quarterly figures by product. (Round your answers to the nearest whole dollar amount.)
Mulligan Fruits Corporation wholesales peaches and oranges. Kimberly Priest is working with the company’s accountant to prepare next year’s budget. Ms. Priest estimates that sales will increase 3 percent for peaches and 8 percent for oranges. The current year’s sales revenue data follow.
Explanation / Answer
Answer:a
Answer:b
Answer:c
Particulars First Quarter Second Quarter Third Quarter Fourth quarter Total Peaches 227630 248230 310030 248230 1034120 Oranges 450360 504360 633960 428760 2017440 Total 677990 752590 943990 676990 3051560Related Questions
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