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QUESTION: 67 AT THE BEGINNING OF 2015, ENGLAND DRESSES HAS AN INVENTORY OF $85,000. HOWEVER, MANAGEMENT WANTS TO REDUCE THE AMOUNT OF INVENTORY ON HAND TO $45,000 AT DECEMBER 31. IF NET SALES FOR 2015 ARE FORECAST AT $200,000 AND THE GROSS PROFIT RATE IS EXPECTED TO BE 20%, COMPUTE THE COST OF THE MERCHANDISE WHICH MANAGEMENT SHOULD EXPECT TO PURCHASE DURING 2015.

QUESTION: 67 AT THE BEGINNING OF 2015, ENGLAND DRESSES HAS AN INVENTORY OF $85,000. HOWEVER, MANAGEMENT WANTS TO REDUCE THE AMOUNT OF INVENTORY ON HAND TO $45,000 AT DECEMBER 31. IF NET SALES FOR 2015 ARE FORECAST AT $200,000 AND THE GROSS PROFIT RATE IS EXPECTED TO BE 20%, COMPUTE THE COST OF THE MERCHANDISE WHICH MANAGEMENT SHOULD EXPECT TO PURCHASE DURING 2015.

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...
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QUESTION: 67 AT THE BEGINNING OF 2015, ENGLAND DRESSES HAS AN INVENTORY OF $85,000. HOWEVER, MANAGEMENT WANTS TO REDUCE THE AMOUNT OF INVENTORY ON HAND TO $45,000 AT DECEMBER 31. IF NET SALES FOR 2015 ARE FORECAST AT $200,000 AND THE GROSS PROFIT RATE IS EXPECTED TO BE 20%, COMPUTE THE COST OF THE MERCHANDISE WHICH MANAGEMENT SHOULD EXPECT TO PURCHASE DURING 2015.
Transcribed Image Text:QUESTION: 67 AT THE BEGINNING OF 2015, ENGLAND DRESSES HAS AN INVENTORY OF $85,000. HOWEVER, MANAGEMENT WANTS TO REDUCE THE AMOUNT OF INVENTORY ON HAND TO $45,000 AT DECEMBER 31. IF NET SALES FOR 2015 ARE FORECAST AT $200,000 AND THE GROSS PROFIT RATE IS EXPECTED TO BE 20%, COMPUTE THE COST OF THE MERCHANDISE WHICH MANAGEMENT SHOULD EXPECT TO PURCHASE DURING 2015.
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