Question $1$ of $3$

Other facts

"Travel Trinkets, Inc. had a $$99,000$ cash balance on July $1.$

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Read the requirements.

Requirement a$.$ What were purchases in June and what are expected purchases in July?

Cost of goods sold

Desired ending inventory

Total inventory available

Beginning inventory

Total inventory to purchase

Half of all sales are on credit.

Of the credit sales, $90\%$ are collected in the same month and $10\%$ in the next month.

Sales for June were $$124,100,$ and expected sales are $$180,200$ in July and $$170,000$ in August.

Desired ending inventory is $10\%$ of next month's sales in units at the end of each month.

The gross margin percentage is $50\%.$

Payments to suppliers are made $20\%$ in the same month as purchases are made and $80\%$ in the following month.

Total monthly fixed selling and administrative costs are $$31,000$; of this amount, depreciation expense is $$12,000.$

All cash expenses are paid in the month incurred.

Variable selling and administrative costs are $$0\mathrm{.}50$ per unit and paid in the month incurred.

The sales price is $$17$ per unit.

The company plans to buy a small parcel of land at the end of July for $$14,000.($Assume a cash purchase.$)$

Requirement $b.$ What is the budgeted cost of goods sold for July?

Budgeted cost of goods sold for July $=$