Seaworthy Company, a merchandising company, has prepared the following sales budget: Month Budgeted Sales Мarch $200,000.00 April May June Cost of goods sold is budgeted at 50% of sales, and the inventory at the end of February was $34,000.00. Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold. What is the desired beginning inventory on June 1? 202,000 238,000 256,000 O A. $12,800.00 O B. $118,000.00 OC. $11,900.00 O D. $25,600.00

Seaworthy Company, a merchandising company, has prepared the following sales budget: Month Budgeted Sales Мarch $200,000.00 April May June Cost of goods sold is budgeted at 50% of sales, and the inventory at the end of February was $34,000.00. Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold. What is the desired beginning inventory on June 1? 202,000 238,000 256,000 O A. $12,800.00 O B. $118,000.00 OC. $11,900.00 O D. $25,600.00

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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