Bronkov Company Has the Following Data The Cost of Goods Sold Percentage Is 65% of Sales

question 55

Multiple Choice

Bronkov Company has the following data:
$\begin{array}{ll}\text { Month }&\text { Budgeted Sales }\\\text { May } & \$ 46,000 \\\text { June } & 50,000 \\\text { July } & 52,000 \\\text { August } & 48,000\end{array}$
The cost of goods sold percentage is 65% of sales and the desired ending inventory level is 25% of next month's sales at cost.What are the expected total purchases for June?

• A) $17,500
• B) $32,500
• C) $32,825
• D) $40,950

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Definitions:

Perfectly Positively Correlated

A statistical term describing two variables that move in the same direction with a correlation coefficient of +1, indicating a perfect positive linear relationship.

Cycle Inventory

Inventory that a company holds to meet its normal sales operations, varying over the course of an operating cycle or period.

Forecasted Demand

An estimate of the quantity of a product or service that consumers will purchase in the foreseeable future.

Periodic Review

An evaluation process conducted at regular intervals to assess performance, inventory levels, or other critical factors in operations and management.