Q3

Old Antique Store prepared the following budget information for the month of May:

• Sales are budgeted at $322,000. All sales are on account and a provision for bad debts is made for each month at two percent of sales for the month.
• Inventory was $87,000 on April 30; an inventory increase of $13,000 is planned for May 31.
• All inventory is marked to sell at cost plus 40 percent.
• Estimated cash disbursements for selling and administrative expenses for the month are $51,000.
• Depreciation for May is projected at $6,300.

Old Antique budgeted cost of goods sold (CGS) in May is:

• $92,000.

• $230,000.

• $243,000.

• $128,800.

• $181,100.