Outdoor Company expects to sell 6,500 units for $175 each for a total of $1,137,500 in January and 4,000 units for $220 each for a total of $880,000 in February. The company expects cost of goods sold to average 70% of sales revenue, and the company expects to sell 4,300 units in March for $220 each. Outdoor's target ending inventory is $17,000 plus 50% of the next month's cost of goods sold. Prepare Outdoor's inventory, purchases, and cost of goods sold budget for January and February. C Outdoor Company Inventory, Purchases, and Cost of Goods Sold Budget h Two months Ended January 31 and February 28 January February 796250 Cost of goods sold 325000 Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases 616000

Outdoor Company expects to sell 6,500 units for $175 each for a total of $1,137,500 in January and 4,000 units for $220 each for a total of $880,000 in February. The company expects cost of goods sold to average 70% of sales revenue, and the company expects to sell 4,300 units in March for $220 each. Outdoor's target ending inventory is $17,000 plus 50% of the next month's cost of goods sold. Prepare Outdoor's inventory, purchases, and cost of goods sold budget for January and February. C Outdoor Company Inventory, Purchases, and Cost of Goods Sold Budget h Two months Ended January 31 and February 28 January February 796250 Cost of goods sold 325000 Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases 616000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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