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In: Accounting
PA8-6 Preparing Operating Budgets for a Merchandising Firm (LO 8-5, 8-3a, 6 g, h) Red Canyon T-shirt Company opera...
PA8-6 Preparing Operating Budgets for a Merchandising Firm (LO 8-5, 8-3a, 6 g, h)
Red Canyon T-shirt Company operates a chain of T-shirt shop 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 | 33,000 | 53.000 | 26,500 | 53,000 |
• Each T-shirt is expected to sell for $19.
• The purchasing manager buys the T-shirts for 58 each
• The company needs to have enough T-shirts on hand at the end of each quarter to fill 29 percent of the next quarter's sales demand.
• Seling and administrative expenses are budgeted at $66,000 per quarter plus 15 percent of total sales revenue.
5. Complete the budgeted income statement for each quarter.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO
8-5, 8-3a, f, g, h] 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 34,000 54,000 27,000 54,000 Each T-shirt is
expected to sell for $18. The purchasing manager buys the T-shirts
for $7 each. The company...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO
8-5, 8-3a, f, g, h]
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
39,000
59,000
29,500
59,000
Each T-shirt is expected to sell for $14.
The purchasing manager buys the T-shirts for $6 each.
The company...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO
8-5, 8-3a, f, g, h]
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
34,000
54,000
27,000
54,000
Each T-shirt is expected to sell for $18.
The purchasing manager buys the T-shirts for $7 each.
The company...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO
8-5, 8-3a, f, g, h] 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...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h] Red Canyon...
PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO
8-5, 8-3a, f, g, h] 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 46,000 72,000 36,000 72,000 Each T-shirt is
expected to sell for $21. The purchasing manager buys the T-shirts
for $8 each. The company...
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 1Quarter 2Quarter 3Quarter 4 Budgeted Unit Sales32,00052,00026,00052,000 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...
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...
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