Question
China Industries' budgeted monthly sales for the first quarter are as follows: January $120,000, February $260,000, and March $240,000. The company's policy is to set
China Industries' budgeted monthly sales for the first quarter are as follows: January $120,000, February $260,000, and March $240,000. The company's policy is to set selling prices to earn a 40% gross profit on sales revenue and to maintain an ending inventory balance equal to 30% of the next month's cost of goods sold. What is the budgeted amount of inventory purchases for the month of February?
-$148,800
-$152,400
-$156,000
-$159,600
-None of the above
China Industries' budgeted monthly sales for the first quarter are as follows: January $120,000, February $260,000, and March $240,000. The company's policy is to set selling prices to earn a 40% gross profit on sales revenue and to maintain an ending inventory balance equal to 30% of the next month's cost of goods sold. What is the budgeted amount of inventory purchases for the month of February?
-$148,800
-$152,400
-$156,000
-$159,600
-None of the above
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Internal Audit Of The Future The Impact Of Technology Innovation
Authors: An Anthology Compiled And Contributed To By A. Michael Smith
1st Edition
1634540638, 978-1634540636
