Question

A sporting equipment store expects to purchase $8,000 of ski boots in October. The store had $2,000 of ski boots in merchandise inventory at the beginning of October, and expects to have $3,000 of ski boots in merchandise inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?

Answer 1

Answer: $7000

Explanation:

cost of ski boots = $8000

merchandise inventory at the beginning of October = $2000

merchandise inventory at the end of October = $3000

So,

Budgeted cost of goods sold for October = cost of ski boots + inventory at the beginning -  inventory at the end

= 8000 + 2000 - 3000

= $7000

∴ The budgeted cost of goods sold for October is $7000.