Summit Traders wants an ending inventory each month equal to 25% of that month's cost of sales. Cost of sales for March is projected at $120,000. Ending inventory at the end of February was $30,000. Based on this information, purchases for March will be: a. $93,000 b. $105,000 c. $99,000 d. $120,000
Summit Traders wants an ending inventory each month equal to 25% of that month's cost of sales. Cost of sales for March is projected at $120,000. Ending inventory at the end of February was $30,000. Based on this information, purchases for March will be: a. $93,000 b. $105,000 c. $99,000 d. $120,000
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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Based on the information purchases for March will be?

Transcribed Image Text:Summit Traders wants an ending inventory each month equal to
25% of that month's cost of sales. Cost of sales for March is
projected at $120,000. Ending inventory at the end of February was
$30,000. Based on this information, purchases for March will be:
a. $93,000
b. $105,000
c. $99,000
d. $120,000
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