Question

Your company has sales of $ 93,600 this year and cost of goods sold of $ 64,700. You forecast sales to increase to $ 117, 400 next year. Using the percent of salesâ method, forecast nextâ year's cost of goods sold.

Answer 1

COGS= $81,146.88

Step-by-step explanation:

Giving the following information:

Your company has sales of $93,600 this year and the cost of goods sold of $64,700. You forecast sales to increase to $ 117, 400 next year.

First, we need to calculate the percentual participation of cost of goods sold:

%COGS= 64,700/93,600= 0.6912= 69.12%

Now, using the same percentage, we calculate the cost of goods sold for the estimated new sales:

COGS= 117,400*0.6912= $81,146.88