Question

Marty's Merchandise has budgeted sales as follows for the second quarter of the year:


April $ 30,000
May $ 60,000
June $ 50,000

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Cost of goods sold is equal to 70% of sales. The company wants to maintain a monthly ending inventory equal to 120% of the cost of goods sold for the following month. The inventory on March 31 was below this target and was only $22,000. The company is now preparing a Merchandise Purchases Budget for April, May, and June.
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The budgeted purchases for May are:
$50,400
$60,000
$33,600
$49,400​

Answer 1

Answer:

Marty's Merchandise Has Budgeted Sales As Follows For The Second Quarter Of The Year. April $30,000 $60,000 Une $50,000 May Cost Of Goods Sold Is Equal To 70% Of Sales. The Company Wants To Maintain A Monthly Ending Inventory Equal To 120% Of The Cost Of Goods Sold For The Following Month.