Warm Hands sells its motorcycle gloves worldwide. Warm Hands expects to sell 2,600 pairs of gloves for $110 each in January and 2,000 pairs of gloves for $130 each in February. All sales are cash only. Warm Hands expects the cost of goods sold to average 65% of sales revenue and the company expects to sell 3,000 pairs of gloves in March for $150 each. Warm Hands' target ending inventory is $10,000 plus 50% of the next month's cost of goods sold. Required:

1. Prepare the sales budget for January and February.

2. Prepare Warm Hands' inventory, purchases, and cost of goods sold budget for January and February

Transcribed Image Text:

Warm Hands Sales Budget For the month January and February January February Pair sales Pair selling price $=== $=== Total sales revenue $=== $=== Warm Hands Sales Budget For the month January and February January February Pair sales Pair selling price $=== $=== Total sales revenue $=== $===

Answer rating: 100% (QA)

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