A tire store purchased $3,800 of tires in September.The store had $1,500 of tires on hand at the beginning of September,and expected to have $1,300 of tires at the end of September to cover part of anticipated October sales.What is the budgeted cost of goods sold for September?

Question

Quizplus · Accepted Answer

The budgeted cost of goods sold is the cost of the tires that were sold during the month. This is calculated by adding the beginning inventory to the purchases and then subtracting the ending inventory. In this case, the beginning inventory was $1,500, the purchases were $3,800, and the ending inventory is expected to be $1,300. Therefore, the budgeted cost of goods sold is $1,500 + $3,800 - $1,300 = $4,000.

A Tire Store Purchased $3,800 of Tires in September