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Prepare an inventory, purchases, and cost of goods sold budget for each of the first...

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Accounting

Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quaters of the year. Compute cost of goods sold for the entire nine-month period. image
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Scannell, Inc. Inventory, Purchases, and cost of Goods Sold Budget Nine Months Ended September 30, 2024 Quarter Ended March 31 44,000 Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted Purchases Data Table Quarter Ended Nine-Month March 31 Total Cash sales, 20% $ 22,000 $ 88,000 June 30 September 30 32,000 $ 27,000 $ 128,000 108,000 81,000 324,000 Credit sales, 80% $ 110,000 $ 160,000 $ 135,000 $ 405,000 Total sales Print Done In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarter's ending inventory should not be below $10,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $210,000 during the fourth quarter. The January 1 inventory was $17,000. Print Done

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