Answer:
$1,068,000
Explanation:
JASON COMPANY
Budgeted Income StatementFor the Month Ended October 31, 2019
Sales $1,800,000
Cost of goods sold
Inventory, October 1 $216,000
Purchases $1,068,000
Cost of goods available for sale $1,284,000
($1,068,000+$216,000)
Less: Inventory, October 31 $204,000
Cost of goods sold $1,080,000
($1,284,000-$204,000)
Gross profit $720,000
($1,800,000-$1,080,000)
Supporting Computations:
Budgeted cost of goods sold $1,080,000
Desired ending merchandise inventory 204,000
Total $1,284,000
Less: Beginning merchandise inventory ,($216,000)
Budgeted merchandise purchases$1,068,000
October
$1,800,000 × 60% = $1,080,000.
($1,700,000 × 60%) × 20% = $204,000.
$1,080,000 × 20% = $216,000.
