Prepare the budgeted income statement

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Reference no: EM131202217

In September 2015, the budget committee of Ahmad Company assembles the following data:

1. Expected Sales

October $900,000

November 850,000

December 800,000

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.

Required:

Prepare the budgeted income statement for October through gross profit on sales, including a cost of goods sold schedule.

Reference no: EM131202217

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