Friday, May 27, 2011

Purchases budgeted for January total

ACCOUNTING

Multiple Choice

Wallace Company provides the following data for next year:



Month Budgeted Sales

January $120,000

February 108,000

March 132,000

April 144,000



The gross profit rate is 40% of sales. Inventory at the end of December is $21,600 and target ending inventory levels are 30% of next month's sales, stated at cost.



Purchases budgeted for January total

a. $130,800

b. $72,000

c. $69,840

d. $74,16

Click here for the SOLUTION

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