Question
In: Accounting
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | |
| Budgeted Unit Sales | 32,000 | 52,000 | 26,000 | 52,000 |
Each T-shirt is expected to sell for $20.
The purchasing manager buys the T-shirts for $8 each.
The company needs to have enough T-shirts on hand at the end of each quarter to fill 30 percent of the next quarter’s sales demand.
Selling and administrative expenses are budgeted at $64,000 per quarter plus 16 percent of total sales revenue.
Required:
.1. Determine budgeted sales revenue for each quarter.
2. Determine budgeted cost of merchandise purchased for each quarter.
3. Determine budgeted cost of good sold for each quarter.
4. Determine selling and administrative expenses for each quarter.
5. Complete the budgeted income statement for each quarter.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Budgeted Unit Sales
40,000
60,000
30,000
60,000
•
Each T-shirt is expected to sell for $15.
•
The purchasing manager buys the T-shirts for $6 each.
•
The company needs to have enough T-shirts...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in
the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Budgeted Unit Sales
42,000
64,000
32,000
64,000
Each T-shirt is expected to sell for $17.
The purchasing manager buys the T-shirts for $7 each.
The company needs to have enough T-shirts on hand at the end of
each quarter to...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in
the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information: Budgeted Unit Sales Quarter 1 47,000 Quarter 2 74,000
Quarter 3 37,000 Quarter 4 74,000 Each T-shirt is expected to sell
for $22. The purchasing manager buys the T-shirts for $9 each. The
company needs to have enough T-shirts on hand at the end of each
quarter to...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops
in the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information:
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Budgeted unit sales 50,000 80,000 40,000 80,000
Each T-shirt is expected to sell for $25.
The purchasing manager buys the T-shirts for $10 each.
The company needs to have enough T-shirts on hand at the end
of each quarter to...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in
the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Budgeted Unit Sales
49,000
78,000
39,000
78,000
Each T-shirt is expected to sell for $24.
The purchasing manager buys the T-shirts for $10 each.
The company needs to have enough T-shirts on hand at the end of
each quarter to...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in
the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information: Quarter 1-49000, Quarter 2-78000, Quarter 3- 39000
Quarter 478000 Budgeted Unit Sales. Each T-shirt is expected to
sell for $24. The purchasing manager buys the T-shirts for $10
each. The company needs to have enough T-shirts on hand at the end
of each quarter to fill 34 percent...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in
the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Budgeted Unit Sales
41,000
62,000
31,000
62,000
Each T-shirt is expected to sell for $16.
The purchasing manager buys the T-shirts for $6 each.
The company needs to have enough T-shirts on hand at the end of
each quarter to...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in
the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Budgeted unit sales
48,000
76,000
38,000
76,000
Each T-shirt is expected to sell for $23.
The purchasing manager buys the T-shirts for $9 each.
The company needs to have enough T-shirts on hand at the end of
each quarter to...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in
the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Budgeted Unit Sales
36,000
56,000
28,000
56,000
Each T-shirt is expected to sell for $11.
The purchasing manager buys the T-shirts for $4 each.
The company needs to have enough T-shirts on hand at the end of
each quarter to...
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The...
Red Canyon T-shirt Company operates a chain of T-shirt shops in
the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted Unit
Sales 37,000 57,000 28,500 57,000 Each T-shirt is expected to sell
for $12. The purchasing manager buys the T-shirts for $5 each. The
company needs to have enough T-shirts on hand at the end of each
quarter to...
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