Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $70,000. October November December Budgeted cost of goods sold60,000 40,000 50,000 Plus: Desired ending inventory6,000 ? ? Inventory needed66,000 ? ? Less: Beginning inventory9,000 ? ? Required purchase (on account)57,000 ? ? What would be the required purchases (on account) for December?
A. $53,000
B. $47,000
C. $50,000
D. $60,500
Answer: A
You might also like to view...
First Direct is an example of a bank with too many branches
Indicate whether the statement is true or false
A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs
Indicate whether the statement is true or false a. True b. False
Generally, when writing a first draft, you should
a. write slowly and deliberately, trying not to make mistakes. b. write intermittently as you think of new ideas. c. write rapidly with the intent to fix mistakes during the editing process. d. write over a period of days to maximize creativity.
Complete messages
a. cannot be concise messages b. need not be courteous messages c. contain all the information needed to achieve the writer's objective d. none of the above