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The following information pertains to the January operating budget for Casey Corporation.
Budgeted sales for January $200,000 and February $107,000.
Collections for sales are 40% in the month of sale and 60% the next month.
Gross margin is 25% of sales.
Administrative costs are $11,000 each month.
Beginning accounts receivable is $26,000.
Beginning inventory is $15,000.
Beginning accounts payable is $68,000. (All from inventory purchases.)
Purchases are paid in full the following month.
Desired ending inventory is 25% of next month's cost of goods sold (COGS).
For January, budgeted cost of goods sold is ________.
Group of answer choices
$200,000
$150,000
$135,000
$72,600
Answer & Explanation
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