Caplico Company Has Prepared the Following Sales Budget Cost of Sales Is Budgeted at 50% of Sales and |

question 144

Multiple Choice

Caplico Company has prepared the following sales budget:
$$\begin{array} { | l | l | } \hline \text { Month } & { \text { Budgeted sales } } \\\hline \text { March } & \$ 500,000 \\\hline \text { April } & 190,000 \\\hline \text { May } & 248,000 \\\hline \text { June } & 233,000 \\\hline\end{array}$$
Cost of sales is budgeted at 50% of sales and the inventory at the end of February was $34,000.Desired inventory levels at the end of each month are 10% of the next month's cost of sales.What is the desired beginning inventory on 1 June?

• A) $11,650
• B) $23,300
• C) $12,400
• D) $112,000

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Definitions:

Commission of Crime

The act of carrying out or committing a criminal act.

Duty of Care

A legal obligation which requires individuals or organizations to exercise reasonable care towards others, to avoid causing harm or risking safety.

Negligence

The absence of the caution a typically careful individual would use in similar circumstances.

Grossly Negligent

Refers to a severe lack of care or action that significantly breaches the duty of care owed to another, resulting in substantial harm or risk.