Kohl Company makes computer bags. Its sales budget for four months is:

Sales Month

December 15,000

January 20,000

February 40,000

March 60,000

Kohl's policy is that ending inventory of finished bags should equal 30% of the next month's sales. Beginning inventory (December 1) is 4,500 bags. Budgeted production cost is $5.00

Each bag required 1.5 yards of ballistic nylon. The ending inventory policy for nylon is that 20% of the following month's production needs must be on hand. On December 1, Kohl had 3,300 yards of nylon in inventory. Budget Ballistic Nylon cost is $0.75/yard.

1. Compute the budgeted Ending Finished Goods Inventory for January:

2. Compute the Budgeted Beginning Finished Goods Inventory for January:

3. What is the budgeted COGM for bags in January?

4. Compute the budgeted Ending Materials Inventory for December:

5. What is the budgeted Cost of Goods Sold for January?