Question

A sporting goods store purchased $9,450 worth of ski boots in October. The store had $4,050 of ski boots in inventory at the beginning of October and expects to have $3,400 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? A. 7450 B. 9450 C. 10100 D. 12850 E. 13500

Answer 1

Budgeted cost of the goods will be $10100

So option (c) will be the correct answer

Step-by-step explanation:

We have given purchased price of the goods = $9450

Inventory at the beginning of October, that is beginning inventory = $4050

And inventory at the ending of October, that is ending inventory = $3400

We have to find the budgeted cost for goods sold in October

Budgeted cost for goods is given by

Budgeted cost = beginning inventory + purchase - ending inventory = $4050+$9450-$3400 = $10100

So option (c) is the correct option