The budget committee of Bargain Suits, an upscale women\'s clothing retailer, ha

Question

The budget committee of Bargain Suits, an upscale women's clothing retailer, 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.) Requirement Prepare Bargain Suits' budgeted income statements for May and June. Show cost of goods sold computations. 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.) May June Cost of goods sold Now complete the budgeted income statements for May and June. (Round your answers to the nearest whole dollar.) Bargain Suits Budgeted Income Statements For the Months Ended May 31 and June 30 May June Sales revenue Cost of goods sold Choose from any list or enter any number in the input fields and then continue to the next question.

Explanation / Answer

BUDGETED COST OF GOODS SOLD MAY JUNE Budgeted Purchases (50% of sales) 26500 27030 Add: Begininng Inventory 16300 16406 Total Needs 42800 43436 Less: Ending inventory 16406 18000 Cost of Goods sold 26394 25436 Note: Computation of Purchases: May June Sales revenue of previous month 50000 53000 Add: Increasing rate 6% 2% Sales revenue of current month 53000 54060 Purchases @50% of revenue 26500 27030 BUDGETED INCOME STATEMENT: MAY JUNE Sales revenue 53000 54060 Less: COGS 26394 25436 Gross margin 26606 28624 Less: Expense Salaries and commission 9650 9703 Rent expense 3200 3200 Depreciation 700 700 Insurance 200 200 Net income before tax 12856 14821 Less: tax @20% 2571.2 2964.2 Net income after tax 10284.8 11856.8

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