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BW Department Store Expects to Generate the Following Sales for the Next

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BW Department Store expects to generate the following sales for the next three months: BW Department Store expects to generate the following sales for the next three months:   BW's cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 25% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should BW plan to purchase in August? A)  $330,000 B)  $314,600 C)  $352,800 D)  $327,800 BW's cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 25% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should BW plan to purchase in August?


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