Kunal Corporation had sales of $60,000 in August; $80,000 in September; $95,000 in October; $115,000 in November and $145,000 in December. Cost of goods sold has consistently been at 65% of sales. Additionally, Kunal had $45,000 worth of merchandise at the start of August and plans on having inventory on hand worth 20% of next month's cost of goods sold. If all inventory purchases are purchased and paid for in the current month, calculate the amount of inventory purchased and paid for in September.

Question

Quizplus · Accepted Answer

Explanation:Cost of goods sold in September = $80,000 * 65% = $52,000Inventory at the end of September = $52,000 * 20% = $10,400Inventory purchased in September = $10,400 + $45,000 (beginning inventory) - $52,000 (cost of goods sold) = $53,950

Kunal Corporation Had Sales of $60,000 in August; $80,000 in September;