# Mascot Ascots, a retailer of collegiate neckwear, has completed the sales forecast for the coming year. Mascot

## Question:

Mascot Ascots, a retailer of collegiate neckwear, has completed the sales forecast for the coming year.

Mascot Ascots maintains an ending inventory level of 65 percent of the following monthâ€™s cost of goods sold. The companyâ€™s cost of goods sold is 40 percent of sales.

Required
a. Prepare Mascot Ascotsâ€™ purchases budget for October. Use the following format:
Budgeted sales dollars
* Cost of goods sold percentage
= Cost of goods sold
+ ending inventory
= Total inventory required
- Beginning inventory
= Budgeted purchases

b. Assuming that Mascot Ascots pays for 40 percent of its purchases in the month of purchase and the remaining 60 percent in the month following the purchase, prepare the companyâ€™s cash payments budget forOctober.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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