Moore Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $400,000 for April and $480,000 for May. Cost of goods sold is expected to be 65% of sales. The company’s desired ending inventory is 20% of the following month’s cost of goods sold. Compute the required purchases for April. Moore Wholesalers Purchases Budget

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Moore Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $400,000 for April and $480,000 for May. Cost of goods sold is expected to be 65% of sales. The company’s desired ending inventory is 20% of the following month’s cost of goods sold.

Compute the required purchases for April.

Moore Wholesalers
Purchases Budget
                                                           
                                                           
 
$
                                                           :                                                            
 
 
                                                           
 
 
                                                           :                                                            
 
 
                                                           
 
$
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