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Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared...

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Accounting

Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $100,000.

October November December
Budgeted Cost of Goods Sold 90,000 70,000 80,000
Plus: Desired Ending Inventory 18,000 ? ?
Inventory Needed 108,000 ? ?
Less: Beginning Inventory 15,000 ? ?
Required purchases (on Account) 93,000 ? ?

What is the amount of cost of goods sold the company will report on its fourth quarter pro forma income statement?

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