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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 50,000 80,000 40,000 80,000 Budgeted unit sales • Each T-shirt is expected to sell for $25. 35 ⚫ 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 35 percent of the next quarter's sales demand. Selling and administrative expenses are budgeted at $100,000 per quarter plus 15 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 expense for each quarter. 5. Complete the budgeted income statement for each quarter. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the budgeted income statement for each quarter. Budgeted Sales Revenue Budgeted Cost of Goods Sold RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 1 Quarter 2 Quarter 3 $ 1,250,000 780,000 Budgeted Gross Margin Budgeted Sales Returns and Allowances Budgeted Contribution Margin Budgeted Net Operating Income

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 50,000 80,000 40,000 80,000 Budgeted unit sales • Each T-shirt is expected to sell for $25. 35 ⚫ 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 35 percent of the next quarter's sales demand. Selling and administrative expenses are budgeted at $100,000 per quarter plus 15 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 expense for each quarter. 5. Complete the budgeted income statement for each quarter. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the budgeted income statement for each quarter. Budgeted Sales Revenue Budgeted Cost of Goods Sold RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 1 Quarter 2 Quarter 3 $ 1,250,000 780,000 Budgeted Gross Margin Budgeted Sales Returns and Allowances Budgeted Contribution Margin Budgeted Net Operating Income

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...
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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 50,000 80,000 40,000 80,000 Budgeted unit sales • Each T-shirt is expected to sell for $25. 35 ⚫ 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 35 percent of the next quarter's sales demand. Selling and administrative expenses are budgeted at $100,000 per quarter plus 15 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 expense for each quarter. 5. Complete the budgeted income statement for each quarter. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the budgeted income statement for each quarter. Budgeted Sales Revenue Budgeted Cost of Goods Sold RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 1 Quarter 2 Quarter 3 $ 1,250,000 780,000 Budgeted Gross Margin Budgeted Sales Returns and Allowances Budgeted Contribution Margin Budgeted Net Operating Income
Transcribed Image Text: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 50,000 80,000 40,000 80,000 Budgeted unit sales • Each T-shirt is expected to sell for $25. 35 ⚫ 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 35 percent of the next quarter's sales demand. Selling and administrative expenses are budgeted at $100,000 per quarter plus 15 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 expense for each quarter. 5. Complete the budgeted income statement for each quarter. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the budgeted income statement for each quarter. Budgeted Sales Revenue Budgeted Cost of Goods Sold RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 1 Quarter 2 Quarter 3 $ 1,250,000 780,000 Budgeted Gross Margin Budgeted Sales Returns and Allowances Budgeted Contribution Margin Budgeted Net Operating Income
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