Haggle Company has a sales budget for next month of $400,000.Cost of goods sold is expected to be 35% of sales.All units are paid for in the month following purchase.The beginning inventory is $10,000 and an ending inventory of $12,000 is desired.Beginning accounts payable is $76,000.The cost of goods sold for next month is ________.
A)$140,000
B)$162,000
C)$172,000
D)$220,000

Question

Quizplus · Accepted Answer

The cost of goods sold is calculated as 35% of the sales budget. Therefore, $400,000 * 35% = $140,000.

Haggle Company Has a Sales Budget for Next Month of $400,000.Cost