A sporting goods store purchased $7,000 of ski boots in October. The store had $3,000 of ski boots in inventory at the beginning of October, and expects to have $2,000 of ski boots in inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?

Question

Quizplus · Accepted Answer

To calculate the budgeted cost of goods sold (COGS) for October, we need to subtract the value of the beginning inventory ($3,000) and the ending inventory ($2,000) from the total cost of ski boots purchased ($7,000).

COGS = ($7,000 + beginning inventory) - ending inventory 
COGS = ($7,000 + $3,000) - $2,000 
COGS = $8,000

Therefore, the budgeted cost of goods sold for October is $8,000.

A Sporting Goods Store Purchased $7,000 of Ski Boots in October