Cost of goods sold is expected to be $70\%$ of sales.

Hampton's policy is to maintain an ending inventory equal to $25\%$ of the next month's projected cost of goods sold.

Supplier requires that hampton's pay for $60\%$ of inventory purchases in the month of purchase and pay the remaining $40\%$

the following month.

Jan sales $=200,000$

From hamton's sales budget

Sales Month

Budgeted Sales

Hampton Hams Company