Cool Logos buys logo-imprinted merchandise and then sells it to university books
ID: 2438833 • Letter: C
Question
Cool Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,008,000 in September, $2,250,000 in October, $2,384,000 in November, and S2 500 000 n December. Cool Logos sets its pnces o earn an average 30% gross profit on sales revenue. The company does not want mentory ofa below $415,000 plus 20% of the next month's cost of goods sold. Prepare a cost of goods sold, inventory, and purchases budget for the months of October and November. Cool Logos Cost of Goods Sold, Inventory, and Purchases Budget For the Months of October and November October November Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventoryExplanation / Answer
October November Cost of goods sold 1575000 1668800 Plus: Desired ending inventory 748760 765000 Total inventory required 2323760 2433800 Less: Beginning inventory 730000 748760 Purchases 1593760 1685040