MC Qu. 86 A sporting equipment store expects to ... A sporting equipment store expects to purchase $8,500 of ski boots in October. The store had $2,500 of ski boots in merchandise inventory at the beginning of October, and expects to have $1,500 of ski boots in merchandise inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October

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Business

Roger Lane

4 May, 17:05

MC Qu. 86 A sporting equipment store expects to ... A sporting equipment store expects to purchase $8,500 of ski boots in October. The store had $2,500 of ski boots in merchandise inventory at the beginning of October, and expects to have $1,500 of ski boots in merchandise inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October

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Sherlyn Barry · Answer 1

Budgeted COGS for october is $9500

Explanation:

The cost of goods sold is the total cost incurred for inventory that relates to a particular sale. The cost of goods sold is calulated using the simple formula,

Cost of Goods Sold

Opening Inventory

Add: Purchases

Less: Closing Inventory

For the month of October, The Cost of goods sold will be,

Cost of Goods Sold

Opening Inventory 2500

Add: Purchases 8500

Less: Closing Inventory (1500)

COGS 9500