Hi-Value Products Company Is Creating an Operating Budget for the 3^rd

question 131

Essay

Hi-value Products Company is creating an operating budget for the 3^rd quarter. Budgeted sales are $100,000 in July, $120,000 in August, $160,000 in September, and $200,000 in October. Cost of goods sold is 60% of sales. The desired ending inventory is 50% of the Cost of goods sold for the following month, plus a "safety cushion" of $2,000.
The inventory balance at the end of June was $50,000. Using the format below, please prepare a budget for Inventory, Purchases and Cost of goods sold.
$$\begin{array} { | l | l | l | l | } \hline \text { Inventory, Purchases and C.O.G.S. Budget } & \text { Jul } & \text { Aug } & \text { Sep } \\\hline \text { Cost of goods sold (a) } & & & \\\hline \text { Desired ending inventory(b) } & & & \\\hline \text { Total inventory required } & & & \\\hline \text { less Beginning inventory } & & & \\\hline \text { Purchases } & & & \\\hline\end{array}$$
(a) COGS = 60% of sales
(b) $2,000 + 50% of COGS for next month

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Definitions:

Triage Nurse

A nursing professional specialized in assessing patients at their arrival in a healthcare setting to prioritize their treatment based on the severity of their condition.

Hippocampus

A crucial part of the brain's limbic system involved in the formation of new memories and associated with learning and emotions.

Cortex

is the outer layer of the brain involved in high-level functions such as consciousness, thought, emotion, reasoning, language, and memory.

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle, or gland cells.