Sander Enterprises prepared the following sales budget:

The expected gross profit rate is 40% 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

Sander Enterprises prepared the following sales budget:

The expected gross profit rate is 40% 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

A)$12,000 × 60% = $7,200

Sander Enterprises Prepared the Following Sales Budget