23). 3) Desired ending inventory is 80% of beginning inventory. If cost of goods sold is $300,000, which of the following statements is true regarding purchases? A) purchase will be 80% of cost of goods sold B) purchases will be less than cost of goods sold C) purchases will equal cost of goods sold D) purchases will be more than cost of goods sold 24) 24) Spencer Company expects cash sales for July of $12,000, and a 10% monthly increase during August and September. Credit sales of $4,000 in July should be followed by 25% increases during August and September. What are budgeted cash sales and budgeted credit sales for September respectively? A) $14,520 and $6,250 B) $14,400 and $6,250 C) $13,200 and $6,000 D) $14,520 and $6,000 25) 25) A March sales forecast projects 10,000 units of Product A and 12,000 units of Product B are going to be sold at prices of $11 and $13, respectively. The desired ending inventory of Product A is 20% higher than the beginning inventory, which was 1,000 units. How much are total March sales for Product A anticipated to be? A) $156,000 B) $132,000 C) $130,000 D) $110,000 26) 26) Heath Company has beginning inventory of 21,000 units and expected sales of 48,000 units. If the desired ending inventory is 15,500 units, how many units should be produced? A) 53,000 B) 42,500 C) 27,000 D) 45,000 27) Martin Company sells a certain product for $15 per unit. The beginning inventory is 40,000 units, and the desired ending inventory is 32,000 units. If budgeted production is 100,000 units, what is the forecasted sales revenue from the product? B) $1,500,000 C) $1,600,000 D) $1,380,000 28) 28) Yokeley Enterprises recorded sales of $160,000 during March. Management expects sales to increase 5% in April, 3% in May, and 5% in June. Cost of goods sold is expected to be 70% of sales. What is budgeted gross profit for June? A) $127,184 B) $54,508 C) $112,000 D) $181,692 29) 29) Liu Electronics budgeted sales of 5400,000 for the month of November and cost of goods sold equal 65% of sales, Beginning inventory was $80,000 and ending inventory is estimated at $72.00 How much are the budgeted purchases for November? A) $264,800 B) $252,000 C) $265,200 D) $254,800