Fosnight Enterprises prepared the Following sales budget: Month Budgeted Sales M

Question

Fosnight Enterprises prepared the Following sales budget: Month Budgeted Sales March $6,000 April S13,000 May $12,000 June $14,000 The expected gross profit rate is 30% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month rsquo s cost of goods sold. What is the desired ending inventory on May 31? $9,8000 $1,960 $1,680 $840 Fosnight Enterprises prepared the following sales budget: Month Budgeted Soles March $6,000 April $13,000 May $12,000 June $14,000 The expected gross profit rate is 30% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month rsquo s cost of goods Sold. What is the budgeted cost of goods sold for May? $2,400 $3,600 $4,200 $8,400 Fosnight Enterprises prepared the following sales budget: Month Budgeted Sales March $6,000 April $13,000 May SI2.000 June $14,000 The expected gross profit rate is 30% and the inventory at the etui of February was $10,000. received inventory levels at the end of the month are 20% of the next month rsquo s cost of goods sold. What are the total purchases budgeted for April? $8,680 $10,920 $ 9,240 $8,960

Explanation / Answer

28- B- $1960

   COGS for June =14000-30% =$9800

Ending Inventory for may = 20% of 9800 =$1960

29- D- $8400

   COGS for May = Sales - 30% of Sales= 12000-3600 =$8400

  

30- Purchase Budget-

B- $8960

Month Sale Gross Profit COGS Begning Inv. Ending Inv. March $6,000.00 $1,800.00 $4,200.00 $10,000.00 $1,820.00 April $13,000.00 $3,900.00 $9,100.00 $1,680.00 May $12,000.00 $3,600.00 $8,400.00 $1,960.00 June $14,000.00 $4,200.00 $9,800.00

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