Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goodssold is $140,000.OctoberNovember DecemberBudgeted Cost of Goods Sold130,000110,000 120,000Plus: Desired Ending InventoryInventory Needed16,500??146,500??Less: Beginning Inventory19,500??Required purchases (on Account)127,000??What would be the required purchases (on account) for December?Multiple Choice$123,000$140,300$103,000$120,000

A budget is an estimate of preparing a plan to manage the company's revenue and expenses based on…

Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $140,000. Budgeted Cost of Goods Sold October November December 130,000 110,000 120,000 Plus: Desired Ending Inventory Inventory Needed 16,500 146,500 ? Less: Beginning Inventory 19,500 ? Required purchases (on Account) 127,000 ? What would be the required purchases (on account) for December? Multiple Choice $123,000 OOOO $140,300 $103,000 $120,000

Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $140,000. Budgeted Cost of Goods Sold October November December 130,000 110,000 120,000 Plus: Desired Ending Inventory Inventory Needed 16,500 146,500 ? Less: Beginning Inventory 19,500 ? Required purchases (on Account) 127,000 ? What would be the required purchases (on account) for December? Multiple Choice $123,000 OOOO $140,300 $103,000 $120,000

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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