Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Sales of $ 550 000 are forecast for the third quarter
Sales of $ 550 000 are forecast for the third quarter. Gross profit is 40 per cent of sales, and beginning inventory is 5 165 000. If ending inventory is budgeted as $ 215 000, what are the budgeted purchases? $ 270 000 $ 165 000 $ 380 000 $ 330 000
Expert Solution
In the given question we are required to find budgeted purchases-
Beginning inventory+Purchases+Gross profit= Sales + Ending Inventory
Beginning inventory=$165000(given)
Purchases= Required to find
Gross profit= 40% of $550000 = $220000
Sales=$550000(given)
Ending Inventory=$215000(given)
$165000+Budgeted purchases+$220000= $550000+$215000
Budgeted purchases= $380000
Therefore,option (C) is correct.
Please do upvote, if this one is helpful to you!!!
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
