Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Great Logos buys? logo-imprinted merchandise and then sells it to university bookstores
Great Logos buys? logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,003,000 in?September, $2,190,000 in? October, $2,383,000 in? November, and $2,510,000 in December. Great Logos sets its prices to earn an average 30?% gross profit on sales revenue. The company does not want inventory to fall below $420,000 plus 15?% of the next?month's cost of goods sold.
Prepare a cost of goods? sold, inventory, and purchases budget for the months of October and November
Answer:
Prepare a cost of goods? sold, inventory, and purchases budget for the months of October and November.
| October | November | |
| Cost of goods sold | 2190000*70%=1533000 | 2383000*70=1668100 |
| Add: ENding inventory | (1668100*15%+420000)=670215 | (2510000*70%*15%+420000)=683550 |
| Total needs | 2203215 | 2351650 |
| Less: Beginning inventory | (1533000*15%+420000) = (649950) | (670215) |
| Purchase | 1553265 | 1681435 |
