The Following Information Pertains to the January Operating Budget for Casey

question 221

Multiple Choice

The following information pertains to the January operating budget for Casey Corporation.
-Budgeted sales for January $200,000 and February $107,000.
-Collections for sales are 40% in the month of sale and 60% the next month.
-Gross margin is 25% of sales.
-Administrative costs are $11,000 each month.
-Beginning accounts receivable is $26,000.
-Beginning inventory is -15,000.
-Beginning accounts payable is $68,000. (All from inventory purchases.)
-Purchases are paid in full the following month.
-Desired ending inventory is 25% of next month's cost of goods sold (COGS) .
For January, budgeted cost of goods sold is ________.

• A) $200,000
• B) $150,000
• C) $135,000
• D) $72,600

---

Definitions:

Notre Dame Du Haut

A modern chapel in Ronchamp, France, designed by Le Corbusier, showcasing a departure from traditional architectural forms.

Le Corbusier

A pioneering Swiss-French architect, designer, and urban planner, known for his contributions to modern architecture and the International Style.

Praying Hands

An artwork by Albrecht Dürer, depicting two hands in prayer, widely recognized as a symbol of devotion.

Philip Johnson

An influential American architect, known for his modernist and postmodernist works, including the Glass House in New Canaan, Connecticut.