Question
Fosnight Enterprises prepared the following sales budget: Month Budgeted Sales March $6000 April $13,000 May $10,000 June $16,000 The expected gross profit rate is 30%
Fosnight Enterprises prepared the following sales budget:
| Month | Budgeted Sales |
| March | $6000 |
| April | $13,000 |
| May | $10,000 |
| June | $16,000 |
The expected gross profit rate is 30% and the inventory at the end of February was $5000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold. What are the total purchases budgeted for May?
| A) | $8400 | |
| B) | $6160 | |
| C) | $7000 | |
| D) | $7840 |
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Modern Accounting And Auditing Forms
Authors: Wendell
1st Edition
0882621769, 978-0882621760
