May Corporation, a merchandising firm, has budgeted sales as follows for the third quarter of the year:
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May Corporation, a merchandising firm, has budgeted sales as follows for the third quarter of the year: July - $80,000 August - $90,000 September - $70,000 Cost of goods sold is equal to 65% of sales. The company wants to maintain a monthly ending inventory equal to 130% of the Cost of Goods Sold for the following month. The inventory on June 30 is less than this ideal since it is only $65,000. The company is now preparing a Merchandise Purchases Budget. The budgeted purchases for July are:
- $52,000
- $63,050
- $47,450
- $91,050
Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
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