A sporting equipment store expects to purchase $7,600 of ski boots in October. The store had $3,600 of ski boots in merchandise inventory at the beginning of October, and expects to have $2,600 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?

Question

Mylie Tyler

Business

9 December, 20:31

A sporting equipment store expects to purchase $7,600 of ski boots in October. The store had $3,600 of ski boots in merchandise inventory at the beginning of October, and expects to have $2,600 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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Answers (1)

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Brooklyn Short · Answer 1

Cost of Goods Sold for October is $8,600

Explanation:

Goods available to sale is the sum to Beginning Inventory and the production / Purchases for the period.

Goods Available for sale = Beginning Inventory + Purchases = $3,600 = $7,600 = $11,200

Cost of Goods sold is the cost of the unit sold which is incurred to produce / purchase that products. It is calculated by deducting the ending inventory from goods available to sale.

Cost of Goods Sold = Goods available for sale - Ending Inventory = $11,200 - $2,600 = $8,600