Soft Shell purchases motorcycle helmets which it custom paints and sells to motorcycle dealers and repair shops worldwide. Sales are expected to be $3,000,000 in June, $5,000,000 in July $6,000,000 in August and $3,000,000 in September. Soft Shell sets it prices to average 40% gross profit on sales revenue. The company wants to keep a minimum inventory of $500,000 plus 15% of the next month's cost of goods sold.
Required:
Prepare an inventory, purchases, and cost of goods sold budget for the months of July, and August.

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The Answer of Soft Shell purchases motorcycle helmets which it custom paints and sells to motorcycle dealers and repair shops worldwide. Sales are expected to be $3,000,000 in June, $5,000,000 in July $6,000,000 in August and $3,000,000 in September. Soft Shell sets it prices to average 40% gross profit on sales revenue. The company wants to keep a minimum inventory of $500,000 plus 15% of the next month's cost of goods sold.
Required:
Prepare an inventory, purchases, and cost of goods sold budget for the months of July, and August.

Soft Shell Purchases Motorcycle Helmets Which It Custom Paints and Sells