Johnson Company prepared the following sales budget: Month Budgeted Sales July $6,500 August $15,000 September $13,200 October $16,400 The expected gross profit rate is 35% and the inventory at the end of June was $11,000. Desired inventory levels at the end of the month are 25% of the next month's cost of goods sold. What is the budgeted ending inventory for August in dollars?

Johnson Company prepared the following sales budget: Month Budgeted Sales July $6,500 August $15,000 September $13,200 October $16,400 The expected gross profit rate is 35% and the inventory at the end of June was $11,000. Desired inventory levels at the end of the month are 25% of the next month's cost of goods sold. What is the budgeted ending inventory for August in dollars?

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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