Jackson's Apparel forecasts sales of $320,000 for the quarter ending December 31. Its gross profit rate is 20% of sales, and its September 30 inventory is $72,500. If the December 31 inventory is targeted at $95,000, budgeted purchases for the fourth quarter should be: A. $285,500 B. $240,000 C. $278,500 D. $175,000 E. $88,000

Jackson's Apparel forecasts sales of $320,000 for the quarter ending December 31. Its gross profit rate is 20% of sales, and its September 30 inventory is $72,500. If the December 31 inventory is targeted at $95,000, budgeted purchases for the fourth quarter should be: A. $285,500 B. $240,000 C. $278,500 D. $175,000 E. $88,000

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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