Reference no: EM132471113

Based on the company's past experience, cost of goods sold is usually 65 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

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

Question 2: If the selling and administrative expenses are estimated to be $660,000, prepare the company's budgeted annual income statement.

Question 3: Ms.Jasper estimates next year's ending inventory will be $34,500 for peaches and $57,800 for oranges. Prepare the company's inventory purchases budgets for the next year, showing quarterly figures by product.