Goddard's Department Store has budgeted cost of goods sold of $44,000 for its men's shorts in March. Management also wants to have $8000 of men's shorts in inventory at the end of March to prepare for the summer season. Beginning inventory of men's shorts for March is expected to be $4600. What dollar amount of men's shorts should be purchased in March?

Question

Quizplus · Accepted Answer

To find the dollar amount of men's shorts to be purchased in March, we use the formula: Purchases = (Budgeted Cost of Goods Sold + Desired Ending Inventory) - Beginning Inventory. Plugging in the values: Purchases = ($44,000 + $8,000) - $4,600 = $47,400.

Goddard's Department Store Has Budgeted Cost of Goods Sold of $44,000