S22-14

Bash Company expects to sell 4,500 units for $180 each for a total of 810,000 in January and 1,500 units for $225 each for a total of $337,500 in February. The company expects cost of goods sold to average 70% of sales revenue, and the company expects to sell 4,400 units in March for $270 each. Bash's target ending inventory is $20,000 plus 60% of the next month's cost of good sold. Prepare Bash's inventory, purchases, and costs of goods sold budget for January and February.

Bash Company Inventory. Purchases, and Cost of Goods Sold Budget Two months Ended January 31 and February 28 January February Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted purchases