State logos by logo and printed merchandise and sells it to universitybookstores. sales are expected to be 2,005,000 in sep.

2,170,000 in Oct.

2,377,000 in Nov.

2,550,000 in Dec.

State logo sets it prices to earn an average 30% gross profit on sales revenue. The company does not want inventory to fall below $445,000 plus 15% of the next months cost of goods sold.

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

State 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