Use the Following Information for Questions 96 and 97

question 22

Multiple Choice

Use the following information for questions 96 and 97.
Miles Company, a wholesaler, budgeted the following sales for the indicated months: All merchandise is marked up to sell at its invoice cost plus 25%. Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold.
-The cost of goods sold for the month of June is anticipated to be

• A) $2,025,000.
• B) $2,227,500.
• C) $2,079,000.
• D) $2,376,000.

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Definitions:

Magazine Subscription

A payment made in exchange for receiving regular copies of a magazine, journal, or other periodical publication.

Payment

The transfer of money, goods, or services in exchange for a product, service, or to fulfill a legal obligation.

Depreciation

A method of accounting that distributes the expense of a physical asset across its lifespan.

Fixed Asset

Long-term tangible property that a firm owns and uses in producing its income and is not expected to be consumed or converted into cash in short-term.