Fun4u Corporation, a wholesaler, has a sales budget for next month of $400,000. Cost of units sold is expected to be 40% of sales. All units are paid for in the month following purchase. The beginning inventory of units is $10,000, and an ending amount of $12,000 is desired. Beginning accounts payable is $76,000. The cost of units sold for next month is expected to be:

Question

Quizplus · Accepted Answer

The cost of units sold is 40% of sales, so $400,000 x 40% = $160,000.

Fun4u Corporation, a Wholesaler, Has a Sales Budget for Next