A sporting goods store purchased $7,000 of ski boots in October. The store had $3,000 of ski boots in inventory at the beginning of October, and it expects to have $2,000 of ski boots in inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?

A. $5,000
B. $6,000
C. $8,000
D. $10,000

C) $8,000

Explanation:

The budgeted cost of goods sold should include all the estimated or budgeted expenses that the sporting goods company incurs when purchasing their merchandise. In this case, it must include the cost of the beginning inventory + monthly purchases - cost of ending inventory = $3,000 + $7,000 - $2,000 = $8,000. The COGS also shows their expected sales.

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