Quinn Company sells mobile phones worldwide. The company expects to sell 4,600 mobile phones for $160 each in January and 4,000 mobile phones for $190 each in February. All sales are cash only. Quinn expects cost of goods sold to average 50% of sales revenue. The company also expects to sell 4,200 mobile phones in March for $240 each. Quinn’s target ending inventory is $15,000 plus 60% of the next month’s cost of goods sold.
1. Prepare the sales budget for January and February.
2. Prepare the company’s cost of goods sold, inventory, and purchases budget for January and February.