Marty's Merchandise Has Budgeted Sales as Follows for the Second

question 197

Multiple Choice

Marty's Merchandise has budgeted sales as follows for the second quarter of the year:
Cost of goods sold is equal to 70% of sales. The company wants to maintain a monthly ending inventory equal to 120% of the cost of goods sold for the following month. The inventory on March 31 was below this target and was only $22,000. The company is now preparing a Merchandise Purchases Budget for April, May, and June.
-The desired beginning inventory for June is:

• A) $42,000
• B) $35,000
• C) $50,000
• D) $38,000

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