Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared...
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Accounting
Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $100,000.
October
November
December
Budgeted Cost of Goods Sold
90,000
70,000
80,000
Plus: Desired Ending Inventory
18,000
?
?
Inventory Needed
108,000
?
?
Less: Beginning Inventory
15,000
?
?
Required purchases (on Account)
93,000
?
?
What is the amount of cost of goods sold the company will report on its fourth quarter pro forma income statement?
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