Problem 10-12The accountant at Supreme Audio resigned while he was in the midst of preparing the bud


Problem 10-12The accountant at Supreme Audio resigned while he was in the midst of preparing the budget for 2015.Assumptions:Sales will increase by 25 percent over 2014.Cost of sales equals 60 percent of sales.For 2015, ending inventory should equal 40 percent of the cost of sales for the next quarter.Sales in the first quarter of 2016 will be $300,000.The accountant’s work papers indicated the following:Fill in the missing information to determine the sales and purchases budgets for 2015.Budgeted Sales and Inventory Purchases for 2015Quarter 1Quarter 2Quarter 3Quarter 4TotalSales in 2014$236,000$303,000$280,000$364,000$1,183,000Expected sales in 2015$295,000$$$$Cost of sales$177,000$$$$Beginning inventory66,900$$$$Ending inventory$$$$$Purchases$$$$$

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