A sporting equipment store expects to purchase $8,000 of ski boots in October. The store had $2,000 of ski boots in merchandise inventory at the beginning of October, and expects to have
$3,000 of ski boots in merchandise inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?

Question

Quizplus · Accepted Answer

The budgeted cost of goods sold is calculated as: Beginning Inventory ($2,000) + Purchases ($8,000) - Ending Inventory ($3,000) = $7,000.

A Sporting Equipment Store Expects to Purchase $8,000 of Ski