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Upstairs Company has the following data: Month Budgeted Sales January $112,000 February 125,000 March 132,000 April 120,000 The gross profit rate is 40% of sales
Upstairs Company has the following data:
Month Budgeted Sales
January $112,000
February 125,000
March 132,000
April 120,000
The gross profit rate is 40% of sales and ending inventory at December 31 was $26,325. Desired ending inventory levels are 25% of next month's sales at cost. What are the expected total purchases for March?
A) $77,400
B) $86,480
C) $100,750
D) $105,575
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