In September 2019, the budget committee of ZZ Topp Ltd assembles the following data:
1.
"
2. Cost of sales is expected to be 60% of sales."
3. Desired ending merchandise inventory is 20% of the next month's cost of sales."
4. The beginning inventory at 1 October will be the desired amount.
Instructions : Prepare the budgeted income statement for October through gross profit on sales, including a cost of sales schedule."

Question

In September 2019, the budget committee of ZZ Topp Ltd assembles the following data:
1. 
  "
2. Cost of sales is expected to be 60% of sales."
3. Desired ending merchandise inventory is 20% of the next month's cost of sales."
4. The beginning inventory at 1 October will be the desired amount.
Instructions : Prepare the budgeted income statement for October through gross profit on sales, including a cost of sales schedule."

Quizplus · Accepted Answer

The Answer of In September 2019, the budget committee of ZZ Topp Ltd assembles the following data:
1. 
  "
2. Cost of sales is expected to be 60% of sales."
3. Desired ending merchandise inventory is 20% of the next month's cost of sales."
4. The beginning inventory at 1 October will be the desired amount.
Instructions : Prepare the budgeted income statement for October through gross profit on sales, including a cost of sales schedule."

In September 2019, the Budget Committee of ZZ Topp Ltd