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Budget Cost of Goods Sold for Two Months

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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.

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

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