Outdoors Company expects to sell 7,000 units for $200 each for a total of $1,400,000 in January and 1,500 units for $230 each for a total of $345,000 in February. The company expects cost of goods sold to average 70% of sales revenue, and the company expects to sell 4,200 units in March for $290 each. Outdoors' target ending inventory is $17,000 plus 50% of the next month's cost of goods sold. Prepare Outdoors' inventory, purchases, and cost of goods sold budget for January and February. Outdoors Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases January February

Outdoors Company expects to sell 7,000 units for $200 each for a total of $1,400,000 in January and 1,500 units for $230 each for a total of $345,000 in February. The company expects cost of goods sold to average 70% of sales revenue, and the company expects to sell 4,200 units in March for $290 each. Outdoors' target ending inventory is $17,000 plus 50% of the next month's cost of goods sold. Prepare Outdoors' inventory, purchases, and cost of goods sold budget for January and February. Outdoors Company Inventory, Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases January February

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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