Sienna Apparel forecasts sales of $310,000 for the quarter ending March 31. Its gross profit rate is 22% of sales, and its December 31 inventory is $72,500. If the March 31 inventory is targeted at $89,300, what are the budgeted purchases for the first quarter?

Sienna Apparel forecasts sales of $310,000 for the quarter ending March 31. Its gross profit rate is 22% of sales, and its December 31 inventory is $72,500. If the March 31 inventory is targeted at $89,300, what are the budgeted purchases for the first quarter?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 1E: The sales department of Macro Manufacturing Co. has forecast sales for its single product to be...

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Question

What are the budgeted purchases for the first quarter?

Sienna Apparel forecasts sales of $310,000 for the quarter ending March 31. Its gross
profit rate is 22% of sales, and its December 31 inventory is $72,500. If the March 31
inventory is targeted at $89,300, what are the budgeted purchases for the first
quarter?

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