University Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,007,000 in September, $2,250,000 in October, $2,384,000 in November, and $2,560,000 in December. University Logos sets its prices to earn an average 40% gross profit on sales revenue. The company does not want inventory to fall below $445,000 plus 20% of the next month's cost of goods sold. Prepare a cost of goods sold, inventory, and purchases budget for the months of October and November. University Logos Cost of Goods Sold, Inventory, and Purchases Budget For the Months of October and November October Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory Purchases November

University Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $2,007,000 in September, $2,250,000 in October, $2,384,000 in November, and $2,560,000 in December. University Logos sets its prices to earn an average 40% gross profit on sales revenue. The company does not want inventory to fall below $445,000 plus 20% of the next month's cost of goods sold. Prepare a cost of goods sold, inventory, and purchases budget for the months of October and November. University Logos Cost of Goods Sold, Inventory, and Purchases Budget For the Months of October and November October Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory Purchases November

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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