JT Department Store expects to generate the following sales for the next three months:August$460,000 $580,000September$620,000JulyExpected sales...JT's cost of gods sold is 60% of sales dollars. At the end of each month, JT wantsmerchandise inventory balance equal to 20% of the following month's expected cost ofgoods sold. What dollar amount of merchandise inventory should JT plan to purchase inAugust?A. $352,800 correct answer don'4 know how to get itB. $327,800C. $257,400D. $314,6006.

Merchandise inventory is the monetary worth of items in stock, whether they are finished products or…

JT Department Store expects to generate the following sales for the next three months August $460,000 $580,000 July September $620,000 Expected sales.. JT's cost of gods sold is 60% of sales dollars. At the end of each month, JT wants a merchandise inventory balance equal to 20% of the following month's expected cost o goods sold. What dollar amount of merchandise inventory should JT plan to purchase August? A. $352,800 correct answer don'4 know how to get it B. $327,800 C. $257,400 D, $314,600

JT Department Store expects to generate the following sales for the next three months August $460,000 $580,000 July September $620,000 Expected sales.. JT's cost of gods sold is 60% of sales dollars. At the end of each month, JT wants a merchandise inventory balance equal to 20% of the following month's expected cost o goods sold. What dollar amount of merchandise inventory should JT plan to purchase August? A. $352,800 correct answer don'4 know how to get it B. $327,800 C. $257,400 D, $314,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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MNO Company forecast sales in units for July to November as follows: Units JULY - 4000 aUGUST - 4300 SEPTEMBER - 4500 OCTOBER - 4700 NOVEMBER - 5000 MNO Company would like to maintain 200 units in its ending inventory at the end of each month starting July. Ending inventory for the month of June is 150 units. Beginning inventory at the start of January amounts to 100 units. 1. How many units should MNO Company produce for the month of July to fulfill the expected sales of the company?
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