In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $507,300, July $608,800. 2. Cost of goods sold is expected to be 75% of sales. 3. Desired ending merchandise inventory is 30% of the following (next) month’s cost of goods sold. 4. The beginning inventory at June 1 will be the desired amount. Collapse question part (a) Compute the budgeted merchandise purchases for June. (Round answers to the nearest whole dollar, e.g. 5,275.)
Cost of goods sold ($507,300*75%) | $ 380,475 |
Add: Desired ending inventory ($608,800*75%*30%) | $ 136,980 |
Less: Desired beginning inventory ($380,475*30%) | $ (114,143) |
budgeted merchandise purchases for June | $ 403,313 |
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In May 2017, the budget committee of Grand Stores assembles the following data in preparation of...
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