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12 March, 17:56

Jewelry Company has a sales budget for next month of $450,000. Cost of goods sold is expected to be 45 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of merchandise is $20,000, and an ending inventory of $24,000 is desired. Beginning accounts payable is $206,500. The cost of goods sold for next month is expected to be:

$160,000

$202,500

$360,000

$406,000

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  1. 12 March, 18:35
    0
    The cost of goods sold for next month is expected to be $202,500

    Explanation:

    Given that,

    Sales budget = $450,000

    Cost of Good sold = 45% of sales

    Opening inventory = $20,000

    Ending inventory = $24,000

    Beginning accounts payable = $206,500

    Since, in the given question, it is mentioned that the cost of good sold is 45% of sales.

    So,

    Cost of Goods Sold (COGS) = 0.45 * $450,000

    = $202,500

    Hence, the cost of goods sold for next month is expected to be $202,500

    Note: we don't considered other things which is mentioned in the question.
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