Question 3- 21

evdating a company's performance, why do managers or owhers causes of differences between actual and budgeted amounts Applying Your Knowledge 3-19 Jaime's Hat Shop sells hats with college logos on them; the hats sell for $22 each. This year, Jaime's expects to sell 350 hats in May, 300 in June, 400 in July, 800 in August, 1,040 in September, and 750 in October. On average, 25 percent of its customers pur- chase on credit. Jaime's allows those customers to pay for their purchases the month after they have made their purchases. Required: Prepare a sales budget for Jaime's Hat Shop for the third quarter of this year. Refer to 3-19. Company policy is to plan to end each month with an ending inventory equal to 20 percent of the next month's projected sales. Jaim that it purchases. Jaime and Shop to pay for each purchase 60 days after the purchase. 3-20 his supplier have an arrangement that allows Jaime's Hat e's pays $8 for each hat Required: Prepare a purchases budget for the third quarter of Shop. 3-21 Refer to 3-19. Jaime's ended the second quarter of this year with 60 hats on hand