our Work Accounting 2033-035 Mier comhmtp 21. ass 0.50 points Ctrus Gi Company (

Question

our Work Accounting 2033-035 Mier comhmtp 21. ass 0.50 points Ctrus Gi Company (CGC) purchases quality ots produce from local rowers and sels the produce via the Intme across the United States To keep costs down, CGC maindains warehouse, but no showroom or metail sales outors COC has the following information fer the second quartior of he . Expected monly sales for Apri May, une and July ane $180,000 $130.000, 2150,000, and $70,000, rsevel 2. Cost of goods sold is 50 percent of expected sales s dnsired ending inventory is 80 pancent of the tolowing month's oost of goods soid - Salaries Delivery expense: 5 percent off monthly sales Rent expense on the warehoute $3.500 Insuranc: $30 ther expenses 50 1.Compute the budgeted oost of purchases for each month in the seoond 2. Complote tho budgeted income statent for each month in he second For the Month Ending 0 contro option Command 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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