Operational budgets are used by a retail company for planning and controlling its business activities. Data regarding the companys monthly sales for the last 6 months of the year and its projected collection

patterns are shown below.The cost of merchandise averages 40% of its selling price. The companys policy is to maintain an inventory equal to 25% of the next months forecasted sales. The inventory balance at cost is Php80,000 asof June 30.Forecasted salesJulyPhp775,000August750,000September825,000October800,000November850,000December900,000What is the budgeted cost of the companys purchase for the month of August?A.Php307,500B.Php300,000C.Php450,500D.Php142,500

11. Operational budgets are used by a retail company for planning and controlling its business activities. Data regarding the company's monthly sales for the last 6 months of the year and its projected collection patterns are shown below. The cost of merchandise averages 40% of its selling price. The company's policy is to maintain an inventory equal to 25% of the next month's forecasted sales. The inventory balance at cost is Php80,000 as of June 30. Forecasted sales July August September October November December Php 775,000 750,000 825,000 800,000 850,000 900.000 What is the budgeted cost of the company's purchase for the month of August? A. Php307,500 B. Php300.000 C. Php450,500 D. Php142,500