Dakota Layne is opening up "Layne's Women's Fashions" on April 1.Dakota's sales forecast for the Spring/Summer of Year 1 is shown in the top row of the table.She is going to purchase her merchandise 2 months in advance and her cost of goods sold is 70% of sales.Assume that Dakota has a starting inventory of $21,700 at the beginning of June.What is Dakota Layne's Ending Inventory Balance in June?
Sales and Purchase Forecast
Layne's Women's Fashion

Question

Quizplus · Accepted Answer

Ending Inventory in June = Beginning Inv. In June + Purchases - Cost of Goods Sold
Ending Inventory in June = $21,700 + $12,600 - ($15,000 × 0.70)
Ending Inventory in June = $21,700 + $12,600 - $10,500
Ending Inventory in June = $23,800

Dakota Layne Is Opening Up "Layne's Women's Fashions" on April