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Krakto Ltd marks its inventory up by 60% of cost. Inventory at cost at the beginning of May is R120

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Krakto Ltd marks its inventory up by 60% of cost. Inventory at cost at the beginning of May is R120 000 which, as a policy, represents the anticipated sales for May. Management plans as a matter of policy to reduce inventory by 40%. If sales for June are budgeted at R240 000, calculate the May purchases if the new policy is implemented.

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Fundamental Accounting

Fundamental Accounting

ISBN: 9781485112112

7th Edition

Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit

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Question Details
Chapter # 27- PLANNING AND BUDGETING
Section: Questions
Problem: 3
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Question Posted: August 30, 2023 08:57:17
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