Sullivan, Inc. sells fire rims. Its sales budget for the nine months ended September 30, 2024, and additional information follow: (Click the icon to view the budget) (Click the icon to view additional information) Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period. Plus: Less Sullivan, Inc. Inventory Purchases, and Cost of Goods Sold Budget Nine Months Ended September 30, 2024 Quarter Ended March 31
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Sullivan, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2024, and additional information follow:
(Click the icon to view the budget)
(Click the icon to view additional information)
Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period.
Plus:
Less
Sullivan, Inc.
Inventory Purchases, and Cost of Goods Sold Budget
Nine Months Ended September 30, 2024
Quarter Ended
March 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a5ed893-61e0-498d-adb4-9fd2f5f69109%2F2d23218f-9ed9-4c2b-a35c-d451fd79485e%2Fuw69ot4_processed.jpeg&w=3840&q=75)
![Cash sales, 30%
Credit sales, 70%
Total sales
Quarter Ended
June 30 September 30
48,000 $
112,000
160,000 $
March 31
$ 33,000 $
77,000
$ 110,000 $
40,500 $
94,500
135,000 $
Nine-Month
Total
121,500
283,500
405,000
In the past, cost of goods sold has been 40% of total sales. The director of
marketing and the financial vice president agree that each quarter's ending
inventory should not be below $14,000 plus 10% of cost of goods sold for the
following quarter. The marketing director expects sales of $210,000 during the
fourth quarter. The January 1 inventory was $37,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a5ed893-61e0-498d-adb4-9fd2f5f69109%2F2d23218f-9ed9-4c2b-a35c-d451fd79485e%2Fn5vt8ou_processed.jpeg&w=3840&q=75)
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