Yoshino, Inc., a merchandising company, has the following budgeted figures: $$\begin{array} { | l | l | l | l | l | }
\hline & \text { Jan } & \text { Feb } & \text { Mar } & \text { April } \
\hline \text { Sales } & \$ 51,900 & \$ 69,000 & \$ 80,000 & \$ 91,000 \
\hline \text { Cost of goods sold } & \$ 50 \% \text { of sales } & & & \
\hline \text { Required ending inventory } & \begin{array} { l }
\$ 15,000 + 20 \% \text { of } \
\text { next month's sales }
\end{array} & & & \
\hline \text { Inventory on hand on Jan 1 } & \$ 27,000 & & & \
\hline
\end{array}$$ Calculate the ending merchandise inventory for the month of March.

Question

Yoshino, Inc., a merchandising company, has the following budgeted figures: $$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Jan } & \text { Feb } & \text { Mar } & \text { April } \
\hline \text { Sales } & \$ 51,900 & \$ 69,000 & \$ 80,000 & \$ 91,000 \
\hline \text { Cost of goods sold } & \$ 50 \% \text { of sales } & & & \
\hline \text { Required ending inventory } & \begin{array} { l } 
\$ 15,000 + 20 \% \text { of } \
\text { next month's sales }
\end{array} & & & \
\hline \text { Inventory on hand on Jan 1 } & \$ 27,000 & & & \
\hline
\end{array}$$ Calculate the ending merchandise inventory for the month of March.

Quizplus · Accepted Answer

The ending merchandise inventory for March is calculated as $15,000 + 20\% 	imes \$91,000 (April's sales) = $15,000 + $18,200 = $33,200.

Yoshino, Inc Calculate the Ending Merchandise Inventory for the Month of March