Soft Shell Purchases Motorcycle Helmets Which It Custom Paints and Sells

question 132

Essay

Soft Shell purchases motorcycle helmets which it custom paints and sells to motorcycle dealers and repair shops worldwide. Sales are expected to be $3,000,000 in June, $4,000,000 in July $4,500,000 in August and $2,500,000 in September. Soft Shell sets it prices to average 35% gross profit on sales revenue. The company wants to keep a minimum inventory of $500,000 plus 10% of the next month's cost of goods sold.
Required:
Prepare an inventory, purchases, and cost of goods sold budget for the months of July, and August.

---

Definitions:

Chest Tube Removal

The process of safely taking out a tube that was inserted into the space around the lungs to remove air, blood, or fluids, often after surgery or injury.

Breath Sounds

The noises produced by the movement of air in the respiratory tract, which can be heard through a stethoscope and provide information about lung health.

Pleural Cavity

The thin fluid-filled space between the two layers of the pleura surrounding each lung, facilitating lung movement.

Posterior Chest Tube

A drainage tube placed in the back part of the chest cavity to remove air, fluid, or blood, promoting lung re-expansion.