Mimosa,Inc Calculate Cost of Goods Sold for the Month of February

Mimosa,Inc.,a merchandising company,has the following budgeted figures: $$\begin{array} { | l | l | c | c | c | } \hline & { \text { Jan } } & \text { Feb } & \text { Mar } & \text { April } \\\hline \text { Sales } & { \$ 50,200 } & \$ 67,000 & \$ 84,000 & \$ 95,000 \\\hline \text { Cost of goods sold } & 60 \% \text { of sales } & & & \\\hline \text { Required ending inventory } & \begin{array} { l } \$ 10,000 + 25 \% \text { of next } \\\text { month's sales }\end{array} & & & \\\hline \text { Inventory on hand on Jan 1 } & { \$ 27,500 } & & & \\\hline\end{array}$$ Calculate cost of goods sold for the month of February.

A) $16,750
B) $30,120
C) $29,370
D) $40,200

Correct Answer:

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