In September 2016 the budget committee of Jason Company assembles the following data:
1. Expected Sales $$\begin{array} { l r }
\text { October } & \$ 1,800,000 \
\text { November } & 1,700,000 \
\text { December } & 1,600,000
\end{array}$$
2. Cost of goods sold is expected to be 60% of sales.
3. Desired ending merchandise inventory is 20% of the next month's cost of goods sold.
4. The beginning inventory at October 1 will be the desired amount.
Instructions
Prepare the budgeted income statement for October through gross profit on sales including a cost of goods sold schedule.

Question

In September 2016 the budget committee of Jason Company assembles the following data:
1. Expected Sales $$\begin{array} { l r } 
\text { October } & \$ 1,800,000 \
\text { November } & 1,700,000 \
\text { December } & 1,600,000
\end{array}$$ 
2. Cost of goods sold is expected to be 60% of sales.
3. Desired ending merchandise inventory is 20% of the next month's cost of goods sold.
4. The beginning inventory at October 1 will be the desired amount.
Instructions
Prepare the budgeted income statement for October through gross profit on sales including a cost of goods sold schedule.

Quizplus · Accepted Answer

The Answer of In September 2016 the budget committee of Jason Company assembles the following data:
1. Expected Sales $$\begin{array} { l r } 
\text { October } & \$ 1,800,000 \
\text { November } & 1,700,000 \
\text { December } & 1,600,000
\end{array}$$ 
2. Cost of goods sold is expected to be 60% of sales.
3. Desired ending merchandise inventory is 20% of the next month's cost of goods sold.
4. The beginning inventory at October 1 will be the desired amount.
Instructions
Prepare the budgeted income statement for October through gross profit on sales including a cost of goods sold schedule.