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XY Company estimated its sales for the coming 4 months as follows: October $10,000 November $11,000 December $15,000 January $9,000 Estimated cost of goods sold
| XY Company estimated its sales for the coming 4 months as follows: | |||
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| October |
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| $10,000 |
| November |
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| $11,000 |
| December |
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| $15,000 |
| January |
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| $9,000 |
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| Estimated cost of goods sold |
|
| 55.00% |
| Other variable costs (commissions) |
| 20.00% | |
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| Estimated fixed costs |
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| $2,500.00 |
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| The company maintains its inventory at twice it estimated sales requirements | |||
| (sales requirements are cost of goods sold of the next month) | |||
| The beginning inventory |
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| $9,000 |
Desiring ending inventory for December is
| a. | $16,450 | |
| b. | $16,600 | |
| c. | $16,500 | |
| d. | $14,500 | |
| e. | $9,900 |
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