Answer:
expected sales January, 4,000 pairs of shoes at $165 each = $660,000
expected sales February, 2,000 pairs of shoes at $220 = $440,000
expected COGS = 75% of expected revenue
expected sales March, 4,600 pairs of shoes at $240 = $1,104,000
ending inventory = $18,000 plus 45% of next month's COGS
<h2> <u>Sales budget</u> </h2>
Month January February March
Units 4000 2000 4600
Price $165 $220 $240
Total sales $660,000 $440,000 $1,104,000
<h2><u>Inventory, Purchases and COGS Budget</u></h2>
January February March
cost of goods sold $495,000 $330,000 $828,000
<u>+ desired ending inventory $166,500 $390,600 ? </u>
Total merchandise required $661,500 $720,600 ?
<u>- beginning inventory ($315,000) ($346,500) ($374,100)</u>
budgeted purchases $346,500 $374,100 ?
