Cool Logos buys logo imprinted merchandise and then sells it
Cool Logos buys logo- imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2,005,000 in September, $ 2,250,000 in October, $ 2,381,000 in November, and $ 2,590,000 in December. Cool Logos sets its prices to earn an average 30% gross profit on sales revenue. The company does not want inventory to fall below $ 410,000 plus 10% of the next month’s cost of goods sold.

Prepare a cost of goods sold, inventory, and purchases budget for the months of ­October and November.

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