Neat

Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be

$2,000,000

in September,

$2,240,000

in October,

$2,381,000

in November, and

$2,550,000

in December.

Neat

Logos sets its prices to earn an average

30%

gross profit on sales revenue. The company does not want inventory to fall below

$435,000

plus

20%

of the next month's cost of goods sold.

Prepare a cost of goods sold, inventory, and purchases budget for the months of October and November.

Neat Logos
Cost of Goods Sold, Inventory, and Purchases Budget
For the Months of October and November
	October	November
Cost of goods sold
Plus: Desired ending inventory
Total inventory required
Less: Beginning inventory
Purchases