JNT Store expets to generate the following sales for the next three months: August September October Expected sales 460,000 580,000 620,000 JNT's cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold. What dollar amount of desired ending merchandise inventory ojnt in September?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
JNT Store expets to generate the following sales for the next three months:
| August | September | October | |
| Expected sales | 460,000 | 580,000 | 620,000 |
JNT's cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold. What dollar amount of desired ending merchandise inventory ojnt in September?
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