Grippers expects cost of goods sold to average 65% of the current months sales and...
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Accounting
Grippers expects cost of goods sold to average 65% of the current months sales and the company expects to sell 4,300 pairs of shoes in March for $240 each. Grippers target ending inventory is $10,000 plus 50% of the next months cost of goods sold.
Use this information plus the sales budget from Question 1 to prepare Grippers inventory, purchases, and cost of goods sold budget for January and February.
Sales budget from question 1:
Particulars:
Cash Sales in January = 185,000.00
Cash sales in February = 192,500.00
Total = 377,500.00
Credit sales in January = 5,55,000.00
Credit sales in February = 5,77,500.00
Total credit sales = 11,32,500.00
Total Sales in January = 7,40,000.00
Total sales in February = 7,70,000.00
Total = 15,10,000.00
In addition, indicate what the total cost of goods sold will be for the 2 months.
1. cost of goods sold for January is:
2. Cost of goods sold for February is:
3. Total cost of goods sold for the 2 month is:
4. Desired ending inventory for January is:
5. Desired ending inventory for february is:
6. Beginning inventory for January is:
7. Beginning Inventory for February is:
8. Purchases for January are:
9. Purchases for february are:
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