Ask Question
5 April, 04:57

Your company has sales of $ 93,600 this year and cost of goods sold of $ 64,700. You forecast sales to increase to $ 117, 400 next year. Using the percent of salesâ method, forecast nextâ year's cost of goods sold.

+5
Answers (1)
  1. 5 April, 08:22
    0
    COGS = $81,146.88

    Explanation:

    Giving the following information:

    Your company has sales of $93,600 this year and the cost of goods sold of $64,700. You forecast sales to increase to $ 117, 400 next year.

    First, we need to calculate the percentual participation of cost of goods sold:

    %COGS = 64,700/93,600 = 0.6912 = 69.12%

    Now, using the same percentage, we calculate the cost of goods sold for the estimated new sales:

    COGS = 117,400*0.6912 = $81,146.88
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Your company has sales of $ 93,600 this year and cost of goods sold of $ 64,700. You forecast sales to increase to $ 117, 400 next year. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers