Posted: July 12th, 2016

# Calculate the cost of goods sold for jewellery and watches for September and October?

Purchases budget – analytical:
Gemstone, Ltd. is a retail jeweller. Most of the firm’s business is in jewellery and watches. The firm’s average gross profit ratio for jewellery and watches is 80% and 40%, respectively. The sales forecast for the next two months for each product category is as follows;

Jewellery Watches
September \$186,000 \$90,000
October \$144,000 \$76,500

The company’s policy, which is expected to be achieved at the end of August, is to have ending inventory equal to 120% of next month’s cost of goods sold.

a. Calculate the cost of goods sold for jewellery and watches for September and October
b. Calculate a purchases budget, in dollars, for each product for the month of September

### Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

## Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
\$0.00