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ABC Company has a policy of maintaining an inventory of finished goods equal to 25% of the following month's sales units. For the forthcoming month
ABC Company has a policy of maintaining an inventory of finished goods equal to 25% of the following month's sales units. For the forthcoming month of June, the budgeted beginning inventory is at 20,000 units and the ending inventory at 22,000 units. The following are the budgeted sales for the months of August to October August September October 90,000 92,000 94,500 The sales price the finished goods per unit is P150 based on gross profit rate (on cost) of 15%. October ending inventory is estimated to be at 20% less than September's. Operating expenses were estimated as follow: Selling expense is at 2.75% of sales Salary expense is at P5,000 + 3% of sales General and Administrative Expense is at P40,000 per month How much is the cost of sales for the month of June
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