Question

The Company H ops possible to 4200 5.000 500 to $300 0 0000 February a 1500 ten 0 t o 00 February Theory prepare of one of to purcha s e old the toward Investory Purchase and cost of Goods Sold Two months Ended January 31 and 28 Cost of goodsad Torhandtory aging hands L

Answer 1

1. Beginning inventory in January = Closing inventory of December 2016 = 18000 + 50% of COGS of January = $18,000+50%*560,000 = $298,000
2. Closing inventory of January will be the beginning inventory of February.
3. March information is used to calculated the COGS of February.

Answers - January - $400,750

February - $561,750

Image has been attached for the detailed calculation.

January February March Sale units 5,000 1,500 4200 Selling price $160 $230 $300 Sales Value 800,000 345,000 1,260,000 COGS (70% of Sales) 560.000 241,500 882,000 + desired ending 18,000+50%*241,500 18000+0.5*882,000 inventory = 138.750 = 459,000 Total inventory Req. 698,750 700,500 (-) beginning inventory (298,000) |(138,750) Budgeted Purchases = 400.750 561.750 Notes 1. Beginning inventory in January = Closing inventory of December 2016 = 18000 + 50% of COGS of January = $18.000+50%*560,000 = $298,000 2. Closing inventory of January will be the beginning inventory of February. 3. March information is used to calculated the COGS of February.