Question: The accountant at Supreme Audio resigned while he was in the midst of preparing the budget for 2012.His work papers indicated the following: Assumptions: Sales

The accountant at Supreme Audio resigned while he was in the midst of preparing the budget for 2012.His work papers indicated the following:

Assumptions:
Sales will increase by 20 percent over 2011.
Cost of sales equals 65 percent of sales.
Ending inventory should equal 40 percent of the cost of sales for the next quarter.
Sales in the first quarter of 2013 will be $300,000.

Required
Fill in the missing information to determine the sales and purchases budgets for2012.

Budgeted Sales and Inventory Purchases for 2012 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total $220,000 275,000 $330,000 $440,000 $1,265,000 Sales in 2011 Expected sales in 2012 4,000$ Cost of Beginning inventory Ending inventory Purchases Cotct ales $72,6005 $171,600 $

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