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(A) Eddy Bower Industries has projected sales of its product for the next 6 months Each unit is sold at $10 per unit. The cost
(A) Eddy Bower Industries has projected sales of its product for the next 6 months
Each unit is sold at $10 per unit. The cost of goods sold is typically 40% of the months budgeted sales revenue. Eddy Bower tries to maintain a Finished Goods ending inventory equal to the 60% of next months cost of goods sold. January beginning inventories are expected to conform to company policy. Prepare a purchase budget for March, and April
(B) The selling and administrative expense budget of Rayan Corporation is based on budgeted unit sales, which are 4,000 units for February. The variable selling and administrative expense is $8 per unit. The budgeted fixed selling and administrative expense is $78,000 per month, which includes depreciation of $10,000 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the February selling and administrative expense budget should be
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