Question

Jasper Fruits Corporation wholesales peaches and oranges. Barbara Jasper is working with the company’s accountant to prepare next year’s budget. Ms. Jasper estimates that sales will increase 4 percent for peaches and 9 percent for oranges. The current year’s sales revenue data follow:

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
Peaches	$	237,000		$	257,000		$	317,000		$	257,000		$	1,068,000
Oranges		406,000			456,000			576,000			386,000			1,824,000
Total	$	643,000		$	713,000		$	893,000		$	643,000		$	2,892,000

Based on the company’s past experience, cost of goods sold is usually 60 percent of sales revenue. Company policy is to keep 15 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.)

Required

1. Prepare the company’s sales budget for the next year for each quarter by individual product.

2. If the selling and administrative expenses are estimated to be $670,000, prepare the company’s budgeted annual income statement.

3. Ms.Jasper estimates next year’s ending inventory will be $34,700 for peaches and $57,300 for oranges. Prepare the company’s inventory purchases budgets for the next year, showing quarterly figures by product.

Prepare the company’s sales budget for the next year for each quarter by individual product.

	First Quarter Second Quarter Third Quarter Fourth Quarter Total Peaches Oranges Total

If the selling and administrative expenses are estimated to be $670,000, prepare the company’s budgeted annual income statement.

	JASPER FRUITS CORPORATION Budgeted Annual Income Statement

Ms. Jasper estimates next year’s ending inventory will be $34,700 for peaches. Prepare the company’s inventory purchases budgets for the next year, showing quarterly figures by product. (Round your final answers to nearest whole dollar.)

	First Quarter Second Quarter Third Quarter Fourth Quarter Inventory needed Required purchases \

Ms. Jasper estimates next year’s ending inventory will be $57,300 for oranges. Prepare the company’s inventory purchases budgets for the next year, showing quarterly figures by product. (Round your final answers to nearest whole dollar.)

	First Quarter Second Quarter Third Quarter Fourth Quarter Inventory needed Required purchases

Answer 1

Sales and Purchase Budget for Jasper Fruits Corporation:

Please give a thumbs up if you find this answer useful!

a. Sales Budget for Next Year:

b. Budgeted Annual Income Statement:

c.  Inventory Purchases Budgets for The Next Year: