Mimosa,Inc.,a merchandising company,has the following budgeted figures: $$\begin{array} { | l | l | c | c | c | }
\hline & { \text { Jan } } & \text { Feb } & \text { Mar } & \text { April } \
\hline \text { Sales } & { \$ 50,200 } & \$ 67,000 & \$ 84,000 & \$ 95,000 \
\hline \text { Cost of goods sold } & 60 \% \text { of sales } & & & \
\hline \text { Required ending inventory } & \begin{array} { l }
\$ 10,000 + 25 \% \text { of next } \
\text { month's sales }
\end{array} & & & \
\hline \text { Inventory on hand on Jan 1 } & { \$ 27,500 } & & & \
\hline
\end{array}$$ Calculate cost of goods sold for the month of February.

Question

Mimosa,Inc.,a merchandising company,has the following budgeted figures: $$\begin{array} { | l | l | c | c | c | } 
\hline & { \text { Jan } } & \text { Feb } & \text { Mar } & \text { April } \
\hline \text { Sales } & { \$ 50,200 } & \$ 67,000 & \$ 84,000 & \$ 95,000 \
\hline \text { Cost of goods sold } & 60 \% \text { of sales } & & & \
\hline \text { Required ending inventory } & \begin{array} { l } 
\$ 10,000 + 25 \% \text { of next } \
\text { month's sales }
\end{array} & & & \
\hline \text { Inventory on hand on Jan 1 } & { \$ 27,500 } & & & \
\hline
\end{array}$$ Calculate cost of goods sold for the month of February.

Quizplus · Accepted Answer

Cost of goods sold for February is 60% of February sales: 0.60 * $67,000 = $40,200.

Mimosa,Inc Calculate Cost of Goods Sold for the Month of February