Montel Company's July sales budget shows sales of $560,000. The company budgets beginning merchandise Inventory af 568,000 and ending merchandise inventory of $33,000 for July. Cost of goods sold is 30% of sales. Determine the budgeted costof merchandise purchases for July. Hint: Use the relation (Beginning Inventory + Purchases Cost of Gods Sald = Ending Inventory) to solve for purchases. MONTEL COMPANY Budgeted Cost of Merchandise Purchases For Month Ended-July

Montel Company's July sales budget shows sales of $560,000. The company budgets beginning merchandise Inventory af 568,000 and ending merchandise inventory of $33,000 for July. Cost of goods sold is 30% of sales. Determine the budgeted costof merchandise purchases for July. Hint: Use the relation (Beginning Inventory + Purchases Cost of Gods Sald = Ending Inventory) to solve for purchases. MONTEL COMPANY Budgeted Cost of Merchandise Purchases For Month Ended-July

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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