The Gel Company, hair products wholesaler, budgeted $180,000 of credit sales and $30,000 of cash sales for June. All merchandise is marked up to sell at 125% of its invoice cost. What is the budgeted cost of sales for June?

Question

Quizplus · Accepted Answer

The budgeted cost of sales is 80% of the budgeted sales. The budgeted sales are $180,000 + $30,000 = $210,000. Therefore, the budgeted cost of sales is $210,000 x 80% = $168,000.

The Gel Company, Hair Products Wholesaler, Budgeted $180,000 of Credit