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Seaworthy Company, a merchandising company, has prepared the following sales budget: Month Budgeted Sales March $500,000 April 182,000 May 238,000 June 253,000 Cost of goods
Seaworthy Company, a merchandising company, has prepared the following sales budget:
Month | Budgeted Sales |
March | $500,000 |
April | 182,000 |
May | 238,000 |
June | 253,000 |
Cost of goods sold is budgeted at
40%
of sales, and the inventory at the end of February was
$34,000.
Desired inventory levels at the end of each month are
20%
of the next month's cost of goods sold. What is the desired beginning inventory on June 1?
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