Kelita, Inc

question 54

Multiple Choice

Kelita, Inc., projects sales for its first three months of operation as follows: October November December
Credit sales $100,000 $150,000 $200,000
Cash sales 40,000 60,000 50,000
Total Sales $140,000 $210,000 $250,000
Inventory on October 1 is $40,000. Subsequent beginning inventories should be 40% of that month's cost of goods sold. Goods are priced at 140% of their cost. 50% of purchases are paid for in the month of purchase; the balance is paid in the following month. It is expected that 50% of credit sales will be collected in the month following sale, 30% in the second month following the sale, and the balance the third month. A 5% discount is given if payment is received in the month following sale.
What is the projected cost of goods sold for October?

• A)$140,000
• B)$220,000
• C)$257,000
• D)$100,000

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Definitions:

Stress

A condition of mental or emotional strain resulting from adverse or demanding circumstances.

Noise Pollution

Unwanted or harmful outdoor sound created by human activities, such as traffic, construction, and industrial operations, that can disrupt the quality of life.

Incompetent Leadership

The lack of ability, skill, or qualification in leading effectively, resulting in poor team performance and morale.

Multitasking

The ability to handle or manage more than one task simultaneously.