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Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: December
Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2:
December Year 1 (Actual) | January Year 2 (Budgeted) | February Year 2 (Budgeted) | March Year 2 (Budgeted) | |
---|---|---|---|---|
Cost of goods sold | $ 37,000 | $ 67,000 | $ 87,000 | $ 57,000 |
Desired ending inventory levels are 25% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February Year 2 would be:
Multiple Choice
$65,100.
$79,500.
$105,120.
$86,400
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