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Brownsville Novelty Store prepared the following budget information for the month of May: Sales are budgeted at $402,000. All sales are on account and a
Brownsville Novelty Store prepared the following budget information for the month of May:
- Sales are budgeted at $402,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month.
- Inventory was $100,000 on April 30; an inventory increase of $16,000 is planned for May 31.
- All inventory is marked to sell at cost plus 50 percent.
- Estimated cash disbursements for selling and administrative expenses for the month are $64,000.
- Depreciation for May is projected at $7,600.
Brownsville's budgeted cost of goods sold (CGS) in May is:
Multiple Choice
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$134,000.
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$201,000.
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$238,600.
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$284,000.
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$268,000.
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