Sheer, an accountant at a Trader Joe's store, is working on the cost of goods sold (COGS) budget. He extracts some data from the purchase budget to complete the COGS budget. Based on the purchasing budget, the budgeted beginning and the ending finished goods inventories are 170 and 200 units respectively, and the budgeted purchases are 540 units at $4.30 per unit. What will the expected COGS be for the month of August?
A) $2,193
B) $2,451
C) $2,800
D) $2,913

Question

Quizplus · Accepted Answer

Budgeted COGS = Beginning Inventory + Purchases F1F1F1S1?F1F1F10 Ending Inventory = (170 × $4.30) + (540 × $4.30) F1F1F1S1?F1F1F10 (200 × $4.30) = $731 + $2,322 F1F1F1S1?F1F1F10 $860 = $2,193.

Sheer, an Accountant at a Trader Joe's Store, Is Working