(Various budgets) Compute the required answer for each of the following in¬ dependent situations.

a. For next year, Harrington Suits projects $20,000,000 of sales and total fixed manufacturing costs of $5,000,000. Variable manufacturing costs are estimated at 40 percent of sales. Assuming no change in inventory, what is the company’s projected cost of goods sold?

b. Bea Company has projected the following information for October:LO.1 

Transcribed Image Text:

Sales Gross profit (based on sales) Increase in merchandise inventory in October Decrease in accounts payable for October $900,000 35% $40,000 $34,000 What are expected cash disbursements for inventory purchases for October?