Explore BrainMass

Explore BrainMass

    Budget Cost of Goods Sold for Two Months

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Birchem Company sells electric razors. The purchasing department manager prepared the following inventory purchases budget. Birchems policy is to maintain an ending inventory as 10% of the following months cost of goods sold. Octobers budgeted cost of goods sold is $85,000.

    July August September
    Budgeted cost of goods sold............. .$70,000.............. $74,000................... $80,000
    Desired ending inventory................... 7,400 ______ ______
    Inventory needed.............................. 77,400
    Beginning inventory......................... 18,000
    Required purchases 59,400

    Required
    a) Budget cost of goods sold for the next two months.
    b) Purchases required.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:38 pm ad1c9bdddf
    https://brainmass.com/business/budgets/budget-cost-goods-sold-two-months-289068

    Attachments

    Solution Summary

    The expert examines budget costs of goods sold for two months.

    $2.19

    ADVERTISEMENT