M Chapter 8 GRADED Hom Chegg Study | Guided S x Statistics For Business & × Mind

Question

M Chapter 8 GRADED Hom Chegg Study | Guided S x Statistics For Business & × MindTap - Cengage Lea x C ezto.mheducation.com/hm.tpx H Apps D 2 D 3 Bookmarks , My Subscriptions-Y G Gooie New Tab , M Accounting-My Nevada 400 points PA8-6 Preparing Operating Budgets for a Merchandising Firm ILO 8-5, 8-3a. g, h Red Canyon T-shirt Compary operates a chain of T.sturt shops in the southwestern United States. The sales menager has pravided a sales forecast for the coming year, along with the tollowng indormation Budgeted Unt Sales 39000 59 000 29,500 59 000 Each T-shiet is expected to selSo $14 . The purchasing manager buys the T-shins for 56 each he company needs 10 have enough T-Shirts on hand at the end of each quarter to t24 percent of the next quarter's sales demand . Soling nd adrinrstrative Expenses are budgeted at S78 000 per quarter plus total sales revenue 16 percent of Required 1. Determine budgeted sales revenue for each quarler Budgeted Sales Revene 2. Determine budgeted cost of merchandse purchased for each quartor Budgeted Cost of Merchandise Purchased 3. Determine budgoted cost of good sold for each quarter 11:34 AM 11/5/2017

Explanation / Answer

1 Budgeted sales revenue Particulars Quarter 1 Quarter 2 Quarter 3 a. Budgeted unit sales             39,000             59,000             29,500 b. Expected selling price per unit                      14                      14                      14 c. Budgeted sales revenue (a*b)           546,000           826,000           413,000 2 Budgeted cost of merchandise Particulars Quarter 1 Quarter 2 Quarter 3 a. Opening stock (Budgeted unit sales * 24%)                9,360             14,160                7,080 b. Budgeted unit sales             39,000             59,000             29,500 c. Closing stock (Next quarter sales * 24%)             14,160                7,080             14,160 d. Purchases ( b+c-a)             43,800             51,920             36,580 e. Purchase price p.u                         6                         6                         6 f. Budgeted cost of merchandise (d*e)           262,800           311,520           219,480 3 Budgeted cost of goods sold: Particulars Quarter 1 Quarter 2 Quarter 3 a. Opening stock (Refer answer 2)                9,360             14,160                7,080 b. Add: Purchases             43,800             51,920             36,580 c. Less: Closing stock             14,160                7,080             14,160 d. COGS Units             39,000             59,000             29,500 e. Purchase price p.u                         6                         6                         6 f. Budgeted cost of goods sold (d*e)           234,000           354,000           177,000 4 Budgeted selling and admin expenses: Particulars Quarter 1 Quarter 2 Quarter 3 a. Total Sales revenue           546,000           826,000           413,000 b. Budgeted selling and admin expenses ( 78000 + 16 % of Revenue )           165,360           210,160           144,080 5 Red Canyon Tshirt co Budgeted Income Statement Particulars Quarter 1 Quarter 2 Quarter 3 a. Sales revenue           546,000           826,000           413,000 b. Less: COGS           234,000           354,000           177,000 c. Budgeted Gross Margin (a-b)           312,000           472,000           236,000 d. Less: Budgeted selling and admin expenses           165,360           210,160           144,080 e. Budgeted Net Operating Income           146,640           261,840             91,920 Please hit the like button if the answer helped you else leave a comment for further clarification. Thank you! All the best!

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