S22-4: Preparing an operating budget
{"Image DocumentName": "S22-4: Preparing an operating budget", "Image ImageDescription": "Review your results from S22-3. Grippers expects cost of goods sold to average 60% of sales revenue, and the company expects to sell 4,100 pairs of shoes in March for  260 each. Grippers\u2019 target ending inventory is  10,000 plus 50% of the next month\u2019s cost of goods sold. Use this information and the sales budget prepared in S22-3 to prepare Grippers\u2019 inventory, purchases, and cost of goods sold budget for January and February. Grippers. Inventory, Purchases, and Cost of Goods Sold Budget. January. February. Cost of goods sold. (0.60 \u00d7 sales from S 21-3)   918,000.   399, Desired ending inventory. ( 10, \u00d7 Cost of goods. sold for next month) 209, ,800. = Total inventory required. 1,127, ,800. \u2212 Beginning inventory. (469,000) (209,500) = Purchases.   658,500.   519,300. Short exercise 22-4 also focuses on preparing an operating budget.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}