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Company XYZ has a sales budget for next month of $300,000. Cost of goods sold is expected to be 35% of sales. All units are paid for in the month following purchase. The beginning inventory is $5,000 and an ending inventory of $12,000 is desired. Beginning accounts payable is $105,000. The cost of goods sold for next month is ___________.

User Zyxue
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Answer:

$105,000

Step-by-step explanation:

The cost of goods sold requires a straight-forward computation since it is 35% of the budgeted sales amount of $300,000.

Cost of goods sold(budgeted)=$300,000*35%=$105,000.00

The cost of goods sold for next month is $105,000, which is the same as the beginning accounts payable.

It is so because it is an estimate, not the actual cost of goods sold

User Zuzlx
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