Answer the Following Questions Using the Information Below

question 103

Multiple Choice

Answer the following questions using the information below:
Wallace Company provides the following data for next year:
The gross profit rate is 40% of sales. Inventory at the end of December is $21,600 and target ending inventory levels are 30% of next month's sales, stated at cost.
-Purchases budgeted for January total:

• A)$130,800
• B)$72,000
• C)$69,840
• D)$74,160

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Definitions:

Wine

An alcoholic beverage made from fermented grapes or other fruits.

Commodity

represents a basic good used in commerce that is interchangeable with other goods of the same type.

Produce

Refers to agricultural products and goods that have been grown or farmed.

Industry

The sector of an economy that is involved in the production of goods or related services.