Review your results from Short Exercise S22A- 15. 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’ target ending inventory is $ 10,000 plus 50% of the next month’s cost of goods sold. Use this information and the sales bud-get prepared in Short Exercise S22A- 15 to prepare Grippers’ inventory, purchases, and cost of goods sold budget for January and February.

Exercise S22A- 15

Grippers sells its rock- climbing shoes worldwide. Grippers expects to sell 8,500 pairs of shoes for $ 180 each in January and 3,500 pairs of shoes for $ 190 each in February. All sales are cash only. Prepare the sales budget for January and February.