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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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  1. 2 December, 02:54
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    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
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