Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 29

For the following questions, circle the best response.

Seebold, Inc., has budgeted sales and production over the next quarter as follows:

On July 1, Seebold, Inc., has 4,500 units in finished goods. Ending inventory of finished goods for each month is budgeted to be 30% of the next month’s budgeted sales in units. Calculate the budgeted unit sales for September. (Hint: Use the cost of goods sold model.)

a. 20,000.

b. 21,000.

c. 21,400.

d. 22,100.

Step 1 of 2

Cost of goods sold is a schedule used to calculate the total cost of the products, which are produced in a factory. This schedule is reports the total costs of goods sold.

Let, x be the cost of ending finished goods inventory