Question

A sporting equipment store expects to purchase $8,700 of ski boots in October. The store had $2,300 of ski boots in merchandise inventory at the beginning of October, and expects to have $1,300 of ski boots in merchandise inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?

Answer 1

The budgeted cost of goods sold for October is calculated by adding the beginning inventory to the purchases and then subtracting the ending inventory, resulting in $9,700.

Step-by-step explanation:

To calculate the budgeted cost of goods sold for October, we would start by adding the initial inventory to the purchases and then subtracting the ending inventory:

Beginning inventory: $2,300

+ Purchases: $8,700

- Ending inventory: $1,300

= Budgeted Cost of Goods Sold: $9,700

The budgeted cost of goods sold for the store in October would thus be $9,700.

Answer 2

The expected cost of goods sold for the month of October would be $9700

Step-by-step explanation:

Formula for taking out cost of goods sold (October) -

BEGINNING INVENTORY

+

PURCHASING MADE

+

ENDING INVENTORY

Available information - beginning inventory = $2300

purchase = $8700

ending inventory = $1300

Putting the values in the formula -

= $2300 + $8700 - $1300

= $9700