4/ A sporting equipment store expects to purchase $8,500 of ski boots in October

Question

4/ A sporting equipment store expects to purchase $8,500 of ski boots in October. The store had $2,500 of ski boots in merchandise inventory at the beginning of October, and expects to have $1,500 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?

Multiple Choice

$4,000.

$10,000.

$9,500.

$8,500.

$11,000.

5/ Webster Corporation is preparing a master budget for the first quarter of the year. The company budgets production of 3,040 units in January, 2,780 units in February and 3,640 units in March. Each unit requires 0.7 hours of direct labor. The direct labor rate is $14 per hour. Compute the budgeted direct labor cost for the first quarter budget.

Multiple Choice

$81,732.

$92,708.

$132,440.

$116,760.

$66,220.

6/ Coomb’s Fashions forecasts sales of $127,000 for the quarter ended December 31. Its gross profit rate is 30% of sales, and its September 30 inventory is $33,500. If the December 31 inventory is targeted at $42,500, budgeted purchases for the fourth quarter should be:

Multiple Choice

$79,900.

$80,400.

$38,100.

$136,000.

$97,900.

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

Cost of goods sold

= Opening Inventory + Purchases – Closing Inventory

= $2,500 + $8,500 - $1,500

= $ 9,500

So, as per above calculations, option C is the correct option

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