Fosnight Enterprises prepared the following sales budget:

The expected gross profit rate is 30% and the inventory at the end of February was $10,000.Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold.
What is the budgeted cost of goods sold for May?

Question

Fosnight Enterprises prepared the following sales budget:

The expected gross profit rate is 30% and the inventory at the end of February was $10,000.Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold.
What is the budgeted cost of goods sold for May?

Quizplus · Accepted Answer

D)
$12.000 × 70% = $8,400

Fosnight Enterprises Prepared the Following Sales Budget