College Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,003,000 in September, $2,230,000 in October, $2,376,000 in November, and $2,520,000 in December. College Logos sets its prices to earn an average 30% gross profit on sales revenue. The company does not want inventory to fall below $435,000 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. College Logos Cost of Goods Sold, Inventory, and Purchases Budget For the Months of October and November October Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory *** Purchases November
College Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,003,000 in September, $2,230,000 in October, $2,376,000 in November, and $2,520,000 in December. College Logos sets its prices to earn an average 30% gross profit on sales revenue. The company does not want inventory to fall below $435,000 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. College Logos Cost of Goods Sold, Inventory, and Purchases Budget For the Months of October and November October Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory *** Purchases November
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:College Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be
$2,003,000 in September, $2,230,000 in October, $2,376,000 in November, and $2,520,000 in December. College
Logos sets its prices to earn an average 30% gross profit on sales revenue. The company does not want inventory to
fall below $435,000 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.
College Logos
Cost of Goods Sold, Inventory, and Purchases Budget
For the Months of October and November
October
Cost of goods sold
Plus: Desired ending
inventory
Total inventory required
Less: Beginning inventory
Purchases
November
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