Barrett's Fashions forecasts sales of $255,000 for the quarter ended December 31. Its gross profit rate is 18% of sales and its September 30 inventory is $66,300. If the December 31 inventory is targeted at $84,700, budgeted purchases for the fourth quarter should be: A. 273,400 B. 227,500 C. 188,700 D. 45,900 E. 182,234

Barrett's Fashions forecasts sales of $255,000 for the quarter ended December 31. Its gross profit rate is 18% of sales and its September 30 inventory is $66,300. If the December 31 inventory is targeted at $84,700, budgeted purchases for the fourth quarter should be: A. 273,400 B. 227,500 C. 188,700 D. 45,900 E. 182,234

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 1E: The sales department of Macro Manufacturing Co. has forecast sales for its single product to be...

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