Cost of goods sold, inventory, and purchases budget Quinn Company sells mobile phones worldwide. The company...

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Cost of goods sold, inventory, and purchases budget Quinn Company sells mobile phones worldwide. The company begins January with $235,800 of inventory. It expects to sell 4,600 mobile phones for $160 each in January and 4,000 mobile phones for $190 each in February. All sales are cash only. Quinn expects cost of goods sold to average 50% of sales revenue. The company also expects to sell 4,200 mobile phones in March for $240 each. Quinn's targeted ending inventory is $15,000 plus 60% of next month's cost of goods sold. What are budgeted purchases for January? A. $375,200 B. $360,800 C. $971,200 D. $339,200 Cost of goods sold, inventory, and purchases budget Quinn Company sells mobile phones worldwide. The company begins January with $235,800 of inventory. It expects to sell 4,600 mobile phones for $160 each in January and 4,000 mobile phones for $190 each in February. All sales are cash only. Quinn expects cost of goods sold to average 50% of sales revenue. The company also expects to sell 4,200 mobile phones in March for $240 each. Quinn's targeted ending inventory is $15,000 plus 60% of next month's cost of goods sold. What are budgeted purchases for January? A. $375,200 B. $360,800 C. $971,200 D. $339,200

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To calculate the budgeted purchases for January we need to consider the followi... View the full answer