Benjamin Company Has the Following Data Cost of Goods Sold Average 60% of Sales

question 141

Multiple Choice

Benjamin Company has the following data:
$\begin{array}{ll}\text { Month }&\text { Budgeted Sales }\\\text { January } & \$ 108,000 \\\text { February } & 132,000 \\\text { March } & 144,000 \\\text { April } & 120,000\end{array}$
Cost of goods sold average 60% of sales.The inventory at December 31 was $19,440.Desired ending inventory levels are 20% of next month's sales at cost.What is the desired ending inventory value at February 28?

• A) $15,840
• B) $17,280
• C) $26,400
• D) $28,800

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Definitions:

Mutual Trust

The shared belief between individuals or groups that each will act in the best interests of the others, essential for effective collaboration and team dynamics.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals effectively and efficiently.

Employee

An individual hired by a company or organization to perform specific duties in exchange for compensation.

Psychological Factors

Mental and emotional elements that influence the behavior and decisions of individuals or groups, such as motivation, perception, and attitudes.