Fosnight Enterprises prepared the following sales budget: Month Budgeted Sales March $6,000 April $13,000 May $12,000 June
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Question:
Fosnight Enterprises prepared the following sales budget:
Month | Budgeted Sales |
March | $6,000 |
April | $13,000 |
May | $12,000 |
June | $14,000 |
The expected gross profit rate is 30% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold.What is the desired beginning inventory on June 1?
A.$1,680
B.$840
C.$9,800
D.$1,960
Posted Date: