Please give me answer Accounting question Sapco (a retailer) has the following sales forecast:January: $500,000February: $600,000March: $450,000April: $620,000Sapco has a 30% gross margin percentage. Inventory at January 1 is $60,000. Sapco intendsto keep enough inventory on hand at the end of the month to cover 20% of next month'scost of goods sold.How much inventory (in cost, not units) should Sapco purchase in January?Hint: the COGS % is 70%.A. $560,000B. $434,000C. $350,000D. $374,000E. none of the above

Step 1:Define Merchandise Purchases Budget:The purpose of the merchandise purchases budget is to…

Answered: Sapco (a retailer) has the following…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 2CMA

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