Sander Enterprises Prepared the Following Sales Budget: the Expected

question 137

Multiple Choice

Sander Enterprises prepared the following sales budget: The expected gross profit rate is 40% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold.
What are the total purchases budgeted for May?

• A)$8,640
• B)$7,680
• C)$6,960
• D)$7,440