Your company has sales of $ 93,600 this year and cost of goods sold of $ 64,700. You forecast sales to increase to $ 117, 400 next year. Using the percent of salesâ method, forecast nextâ year's cost of goods sold.

Question

Business

Stacy Short

1 December, 23:26

Your company has sales of $ 93,600 this year and cost of goods sold of $ 64,700. You forecast sales to increase to $ 117, 400 next year. Using the percent of salesâ method, forecast nextâ year's cost of goods sold.

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Answers (1)

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Rylan Randolph · Answer 1

COGS = $81,146.88

Explanation:

Giving the following information:

Your company has sales of $93,600 this year and the cost of goods sold of $64,700. You forecast sales to increase to $ 117, 400 next year.

First, we need to calculate the percentual participation of cost of goods sold:

%COGS = 64,700/93,600 = 0.6912 = 69.12%

Now, using the same percentage, we calculate the cost of goods sold for the estimated new sales:

COGS = 117,400*0.6912 = $81,146.88