Kayla's Toys budgeted sales of $300,000 for the month of November and cost of goods sold equal to 70% of sales. Beginning inventory for November was $50,000 and ending inventory for November is estimated at $55,000. How much are the budgeted purchases for November?

Question

Quizplus · Accepted Answer

To calculate budgeted purchases, we need to use the formula: Budgeted purchases = Cost of goods sold + Ending inventory - Beginning inventory

Cost of goods sold = 70% of $300,000 = $210,000
Ending inventory = $55,000
Beginning inventory = $50,000

Therefore, budgeted purchases = $210,000 + $55,000 - $50,000 = $215,000

So, the correct answer is choice letter C.

Kayla's Toys Budgeted Sales of $300,000 for the Month of November