Question
Sapco ( a retailer) has the following sales forecast: January: $500,000 February: $ 600,000 March: $450,000 April: $620,000 Sapco has a 30% gross margin percentage.
Sapco ( a retailer) has the following sales forecast:
January: $500,000
February: $ 600,000
March: $450,000
April: $620,000
Sapco has a 30% gross margin percentage. Inventory at January 1 is $60,000. Sapco intends to keep enough inventory on hand at the end of the month to cover 20% of next month's cost of goods sold.
How much inventory (in cost, not units) should Sapco purchase in January?
Hint: the COGS % is 70%.
| A. | $560,000 | |
| B. | $434,000 | |
| C. | $350,000 | |
| D. | $374,000 | |
| E. | none of the above |
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CAT Paper 8 Implementing Audit Procedures
Authors: BPP Professional Education
1st Edition
0751723126, 978-0751723120
