Homework Answers
Answer -
Step - ( 1 ) - Facts of the Question given -
ABC company has budgeted the following for January month :-
- Sales ( on income statement ) = ?
- Cost of goods sold ( CGS ) = $60000.
If the cost of goods sold is equal to 60 % of sales and the selling price is $10 per unit what are the budgeted sales in dollars and units for each month?
.
Step - ( 2 ) - Analysis -
Budgeted sales in dollars for each month =
( Cost of goods sold in dollars / Percentage of cost of goods sold is equal to sales )
= $60000 / 60%
= $100000.
Budgeted sales in units for each month =
( Budgeted sales in dollars / Selling price per unit )
= $100000 / $10
= 10000 units.
.
Step - ( 3 ) - Conclusion -
Therefore, First Option $100000 and 10000 units, is Correct.
Add Answer to:
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