Burpee Company sells seeds to garden stores. Sales are expected to be $2,038,635 in January, $2,581,891 in February and $2,913,3

Question

3 years ago

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Burpee Company sells seeds to garden stores. Sales are expected to be $2,038,635 in January, $2,581,891 in February and $2,913,3

07 in March. Burpee sets their prices so that they earn an average 32% gross profit on sales revenue. What is budgeted cost of goods sold for the first quarter (January, February and March)?

Business

1 answer:

jasenka [17] · Answer 1 · 2022-04-30T03:46:31+03:00

Answer:

Total COGS= $5,123,006.44

Explanation:

Giving the following information:

Sales:

January= $2,038,635

February= $2,581,891

March= $2,913,307

Burpee sets their prices so that they earn an average 32% gross profit on sales revenue.

<u>We need to calculate the cost of goods sold:</u>

January= 2,038,635*0.68= 1,386,271.8

February= 2,581,891*0.68= 1,755,685.88

March= 2,913,307*0.68= 1,981,048.76

Total COGS= $5,123,006.44