Question

 

1. Q-1 llmakes Software budgeted August purchases of new software at $140,000.The store had software costing $6,000 on hand at the beginning of August, and to cover part of anticipated back-to-school sales in September they expect to have $15,000 of software on hand at the end of August.
   What was the budgeted cost of goods sold for August?

Answer 1

in order to get the Budgeted cost of goods sold,the budgeted number of units in beginning and ending inventory is multiplied by the cost per unit to find the total value of beginning and ending inventory. The cost per unit is calculated by dividing the total cost of goods manufactured by the number of units manufactured.

Budgeted cost of goods sold:

   Inventories at he beginning of the year                   $6,000

Add: Purchases during the year                                $140,000

        cost of goods available for sale                         $146,000

Less: Inventories at the end of the year                       $15,000

Budgeted Cost of goods sold                                     $131,000

the budgeted cost of goods sold for August =$131,000