Brandon Company has prepared the following sales budget: Month Budgeted Sales March $200,000 April 180,000 May 220,000
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Question:
Brandon Company has prepared the following sales budget: | |||||
Month | Budgeted Sales | ||||
March | $200,000 | ||||
April | 180,000 | ||||
May | 220,000 | ||||
June | 240,000 | ||||
Cost of goods sold is budgeted at 40% of sales and the inventory at the end of February | |||||
was $40,000. 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? | |||||
So, beginning Inventory for June is ending inventory for May. End Inv May = 20% June CGS |
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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