In September 2010, the Budget Committee of Noyes Company Assembles

Essay

In September 2010, the budget committee of Noyes Company assembles the following data:
1. Expected Sales
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.
Instructions
Prepare the budgeted income statement for October through gross profit on sales, including a cost of goods sold schedule.