Question 6 Chp 7

Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $165,000 October November 155,000 135,000 44,000 December 145,000 Budgeted Cost of Goods Sold Plus: Desired Ending Inventory 7 Inventory Needed 199,000 ? ? Less: Beginning Inventory 28,000 Required purchases (on Account) 171,000 ? 2 What is the amount of cost of goods sold the company will report on its fourth quarter pro forma income statement? Multiple Choice $290,000 What is the amount of cost of goods sold the company will report on its fourth quarter pro forma income statement? Multiple Choice O $290,000 $145,000 $435,000 $470,100