University Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,007,000 in September, $2,250,000 in October, $2,384,000 in November, and $2,560,000 in December. University Logos sets its prices to earn an average 40% gross profit on sales revenue. The company does not want inventory to fall below $445,000 plus 20% 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. University 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
University Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,007,000 in September, $2,250,000 in October, $2,384,000 in November, and $2,560,000 in December. University Logos sets its prices to earn an average 40% gross profit on sales revenue. The company does not want inventory to fall below $445,000 plus 20% 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. University 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
Problem 1Q
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Subject: acounting
Transcribed Image Text:University Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,007,000 in September, $2,250,000 in October, $2,384,000 in November, and $2,560,000 in
December. University Logos sets its prices to earn an average 40% gross profit on sales revenue. The company does not want inventory to fall below $445,000 plus 20% 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.
University 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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