Matthew Company has a sales budget for next month of $400,000.Cost of goods sold is expected to be 40% of sales.All units are paid for in the month following purchase.The beginning inventory is $5,000 and an ending inventory of $12,000 is desired.Beginning accounts payable is $76,000.The cost of goods sold for next month is ________.
A) $140,000
B) $160,000
C) $172,000
D) $220,000

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as 40% of sales. Therefore, COGS = 40% of $400,000 = $160,000.

Matthew Company Has a Sales Budget for Next Month of $400,000.Cost