Ask Experts Questions for FREE Help !
Ask
    victoriamjy's Avatar
    victoriamjy Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 19, 2013, 07:38 AM
    Prepare a cost of goods sold budget
    Expected sales are:
    Units
    July 14700
    August 15120
    September 15680
    October 16240
    Each month's closing inventory is to be 150% of the following month's cost of sales. Average selling price is $30 per unit. Average cost of purchases as $20 per unit.
    How to calculate cost of sales of each month?
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Oct 20, 2013, 05:14 AM
    Cost of goods sold = sales - gross profit
    14700 * (30-20) = 147000
    Now based on sales you can work out purchases for each month. Foer example for June
    Sales 14700 units
    +Ending inventory 15120 * 1.5
    - Beginning inventory 14700 * 1.5
    =16125 units

    Now you can work out COGS budget for each month for each month/
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Prepare a schedule to compute Raynolde's cost of goods sold for 2013 [ 1 Answers ]

Periodic Inventory System : Raynolde's company uses a periodic inventory system. At the end of 2013 the following information is available: Purchase returns and allowances $1,400 Inventory, 12/31/2013 $11,900 Purchases $21,200 Inventory, 1/1/2013 ...

How to prepare cost of goods sold statement ? [ 0 Answers ]

I would like to know if someone can help me to prepare cost of goods sold statement - thanks

Prepare a statent of cost of goods manufactured and sold [ 0 Answers ]

Direct Material R40000 Work-in-process R80000 Finished goods R75000 The following information summarizes the manufacturing activities for March 2008: Purchased manufacturing supplies costing R11000. March 2008 wages payments were as follows: a) Direct labour R43.20 per hour R142560 b)...

How 2 prepare schedule of cost of goods manufactured and sold and an income statement [ 1 Answers ]

Grange Corporation is a manufacturer of precision drill bits. The bits are sold to machine and equipment dealers, and marketing is handled via a network of regionalized manufacturer representatives. The only selling expenses pertain to commissions paid to the manufacturer representatives. The...

Who can prepare a Schedule of Cost of Goods Sold? [ 1 Answers ]

Prepare a Schedule of Cost of Goods Sold and a multi-step Income Statement using the information: Accounts Balance as of 12/31/01 Cash 66,300 Accounts Receivable 2,450 Building 450,250 Accumulated Depreciation ...

View more questions Search