Budgeted sales for ABC Company are as follows:
All stock is marked up to sell at its invoice cost plus 25 per cent. On average 60 per cent of credit sales are collected in the month of sale, 35 per cent in the month following sale and the remainder is uncollectable. The budgeted cost of goods sold for the month of October is:
A) $1 360 000
B) $1 425 000
C) $1 520 000
D) None of the given answers

Question

Budgeted sales for ABC Company are as follows: 
All stock is marked up to sell at its invoice cost plus 25 per cent. On average 60 per cent of credit sales are collected in the month of sale, 35 per cent in the month following sale and the remainder is uncollectable. The budgeted cost of goods sold for the month of October is:
A) $1 360 000 
B) $1 425 000 
C) $1 520 000 
D) None of the given answers

Quizplus · Accepted Answer

The Answer of Budgeted sales for ABC Company are as follows: 
All stock is marked up to sell at its invoice cost plus 25 per cent. On average 60 per cent of credit sales are collected in the month of sale, 35 per cent in the month following sale and the remainder is uncollectable. The budgeted cost of goods sold for the month of October is:
A) $1 360 000 
B) $1 425 000 
C) $1 520 000 
D) None of the given answers

Budgeted Sales for ABC Company Are as Follows