TFS Corporation, a retail company selling hotel furniture, has just completed its master budget for the next fiscal year. Ending inventory is budgeted at 20% of cost of goods available for sale. Selected data from that process appear in the table below: $$\begin{array} { l r }
\text { January } & \$ 50,000 \
\text { February } & 90,000 \
\text { March } & 60,000 \
\text { April } & 100,000
\end{array}$$ TFS' budgeted cost of goods sold for the next fiscal year will be:

Question

TFS Corporation, a retail company selling hotel furniture, has just completed its master budget for the next fiscal year. Ending inventory is budgeted at 20% of cost of goods available for sale. Selected data from that process appear in the table below: $$\begin{array} { l r } 
\text { January } & \$ 50,000 \
\text { February } & 90,000 \
\text { March } & 60,000 \
\text { April } & 100,000
\end{array}$$ TFS' budgeted cost of goods sold for the next fiscal year will be:

Quizplus · Accepted Answer

The total cost of goods available for sale is the sum of the monthly figures provided, which equals $300,000 ($50,000 + $90,000 + $60,000 + $100,000). If ending inventory is budgeted at 20% of the cost of goods available for sale, then ending inventory equals $60,000 (20% of $300,000). Therefore, the budgeted cost of goods sold (COGS) is the cost of goods available for sale minus the ending inventory, which equals $240,000 ($300,000 - $60,000). However, none of the provided choices match this calculation, suggesting there might be a misunderstanding in the question's details or a mistake in the calculation or interpretation of the provided options.

TFS Corporation, a Retail Company Selling Hotel Furniture, Has Just