Question

Question Help Fospight Enterprises prepared the following sales budget Budgeted Sales $3,000 Month March April May June $11,000 $15,000 $10,000 The expected gross profitrate is 20% and the inventory at the end of February was $13,000. Desired inventory levels at the end of the month are 10% of the next month's cost of goods sold. What are the total purchases budgeted for April? hts fc O A. $9,120 O B. $880 OC. $9,680 OD. $8,480 Click to select your answer Learn How to Enter Answers for homework, tests, quizzes, or self-study whether you're starting out or just need a refresher. e $ 5

Answer 1

Budgeted Sales For April	11000
Less: Gross Profit	2200
Cost of Goods Sold	8800
Add: Desired Ending Inventory	1200
Total Required	10000
Less: Beginning Inventory	880
Budgeted Purchases for April	9120
Hence, the answer is A.

А 1 Budgeted Sales For April 2 Less: Gross Profit 3 Cost of Goods Sold 4 Add: Desired Ending Inventory 5 Total Required 6 Less: Beginning Inventory 7 Budgeted Purchases for April B 11000 =B1* 20% =B1-B2 = 15000*0.8*10% =B3+B4 =B3*10% =B5-B6 9 Hence, the answer is A.