Montel Company's July sales budget shows sales of $540,000. The company budgets beginning merchandise inventory of $62,000 and ending merchandise inventory of $38,000 for July. Cost of goods sold is 40% of sales. Determine the budgeted cost of merchandise purchases for July. Hint: Use the relation (Beginning Inventory + Purchases – Cost of Goods Sold = Ending Inventory) to solve for purchases. Budgeted Cost of Merchandise Purchases

Montel Company's July sales budget shows sales of $540,000. The company budgets beginning merchandise inventory of $62,000 and ending merchandise inventory of $38,000 for July. Cost of goods sold is 40% of sales. Determine the budgeted cost of merchandise purchases for July. Hint: Use the relation (Beginning Inventory + Purchases – Cost of Goods Sold = Ending Inventory) to solve for purchases. Budgeted Cost of Merchandise Purchases

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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