Question
Old Antique Store prepared the following budget information for the month of May: Sales are budgeted at $336,000. All sales are on account and a
Old Antique Store prepared the following budget information for the month of May:
Sales are budgeted at $336,000. All sales are on account and a provision for bad debts is made for each month at two percent of sales for the month. Inventory was $85,000 on April 30; an inventory increase of $10,000 is planned for May 31. All inventory is marked to sell at cost plus 40 percent. Estimated cash disbursements for selling and administrative expenses for the month are $49,000. Depreciation for May is projected at $6,100.
Old Antique budgeted cost of goods sold (CGS) in May is:
Multiple Choice
$96,000.
$134,400.
$178,500.
$250,000.
$240,000.
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