The following information was provided to Jacob:
Jacob works for a large store, Shamrock Camping, in the northeast. Shamrock Camping sells all types of camping equipment, specializing in equipment used on long hikes. To save time in creating a quarterly budget, Jacob has been given an average price and average cost so he does not have to calculate each product sold separately. Jacob has used this method in the past, and management has been satisfied with the results. The store manager has informed Jacob that average purchase price of merchandise has increased from last quarter's price of $13.75 per unit to $14.25 per unit. According to the store manager, the new supplier has been selected and shall start supplying in January. Shamrock Camping keeps 15% of the next period's sales in merchandise inventory at the end of the current period.
Using the information provided above, create the following:
a. Sales budget for the first quarter
b. Purchases budget for the first quarter
c. Cost of Goods Sold (COGS) budget for the first quarter
d. What is the difference between COGS for a retailer versus a manufacturer?
Do not round your calculations.

Question

The following information was provided to Jacob:
   Jacob works for a large store, Shamrock Camping, in the northeast. Shamrock Camping sells all types of camping equipment, specializing in equipment used on long hikes. To save time in creating a quarterly budget, Jacob has been given an average price and average cost so he does not have to calculate each product sold separately. Jacob has used this method in the past, and management has been satisfied with the results. The store manager has informed Jacob that average purchase price of merchandise has increased from last quarter's price of $13.75 per unit to $14.25 per unit. According to the store manager, the new supplier has been selected and shall start supplying in January. Shamrock Camping keeps 15% of the next period's sales in merchandise inventory at the end of the current period.
Using the information provided above, create the following:
a. Sales budget for the first quarter
b. Purchases budget for the first quarter
c. Cost of Goods Sold (COGS) budget for the first quarter
d. What is the difference between COGS for a retailer versus a manufacturer?
Do not round your calculations.

Quizplus · Accepted Answer

The Answer of The following information was provided to Jacob:
   Jacob works for a large store, Shamrock Camping, in the northeast. Shamrock Camping sells all types of camping equipment, specializing in equipment used on long hikes. To save time in creating a quarterly budget, Jacob has been given an average price and average cost so he does not have to calculate each product sold separately. Jacob has used this method in the past, and management has been satisfied with the results. The store manager has informed Jacob that average purchase price of merchandise has increased from last quarter's price of $13.75 per unit to $14.25 per unit. According to the store manager, the new supplier has been selected and shall start supplying in January. Shamrock Camping keeps 15% of the next period's sales in merchandise inventory at the end of the current period.
Using the information provided above, create the following:
a. Sales budget for the first quarter
b. Purchases budget for the first quarter
c. Cost of Goods Sold (COGS) budget for the first quarter
d. What is the difference between COGS for a retailer versus a manufacturer?
Do not round your calculations.

The Following Information Was Provided to Jacob