Victor Company expects to sell 9,000 units for $180 each for a total of $1,620,000 in January and 2,500 units for $220 each for a total of $550,000 in February. The company expects cost of goods sold to average 50% of sales revenue, and the company expects to sell 5,000 units in March for $290 each. Victor's target ending inventory is $9,000 plus 40% of the next month's cost of goods sold. Prepare Victor's inventory, purchases, and cost of goods sold budget for January and February. Victor Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January February Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases
Victor Company expects to sell 9,000 units for $180 each for a total of $1,620,000 in January and 2,500 units for $220 each for a total of $550,000 in February. The company expects cost of goods sold to average 50% of sales revenue, and the company expects to sell 5,000 units in March for $290 each. Victor's target ending inventory is $9,000 plus 40% of the next month's cost of goods sold. Prepare Victor's inventory, purchases, and cost of goods sold budget for January and February. Victor Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January February Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Victor Company expects to sell 9,000 units for $180 each for a total of $1,620,000 in January and 2,500 units for $220 each for a total of $550,000 in February. The company expects cost of goods sold to
average 50% of sales revenue, and the company expects to sell 5,000 units in March for $290 each. Victor's target ending inventory is $9,000 plus 40% of the next month's cost of goods sold. Prepare Victor's
inventory, purchases, and cost of goods sold budget for January and February.
Victor Company
Inventory, Purchases, and Cost of Goods Sold Budget
Two months Ended January 31 and February 28
January
February
Cost of goods sold
Plus: Desired ending merchandise inventory
Total merchandise inventory required
Les
Beginning merchandise inventory
Budgeted purchases
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