A sporting goods store purchased $7,000 of ski boots in October. The store had $3,000 of ski boots in inventory at the beginning of October, and expects to have $2,000 of ski boots in 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 for October can be calculated as follows:

Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold

$3,000 + $7,000 - $2,000 = $8,000

Therefore, the budgeted cost of goods sold for October is $8,000.

Option C is the closest answer.

A Sporting Goods Store Purchased $7,000 of Ski Boots in October