Question
ALL CALCULATIONS MUST BE SHOWN The following are budgeted data for the WU Corporation, a merchandising company: Budgeted Sales (at retail) January $300,000 February $340,000
ALL CALCULATIONS MUST BE SHOWN
The following are budgeted data for the WU Corporation, a merchandising company:
| Budgeted Sales (at retail) | |
| January | $300,000 |
| February | $340,000 |
| March | $400,000 |
| April | $350,000 |
| Cost of goods sold as a percentage of sales | 60% |
| Desired ending inventory | 75% of next month sales |
Assuming that the WU Corporation had inventory on hand of $70,000 (at cost) on January 1, calculate the purchases needed to support January sales.
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Fundamental Managerial Accounting Concepts
Authors: Thomas P Edmonds, Philip R Olds
9th Edition
1259969509, 9781259969508
