Alpha Beta Company Has a Sales Budget for Next Month

question 75

Multiple Choice

Alpha Beta Company has a sales budget for next month of $50,000. Cost of goods sold is expected to be 60 percent of sales. All goods are purchased in the month used and paid for in the month following their purchase. The beginning inventory of merchandise is $1,500 and an ending inventory of $2,000 is desired. Beginning accounts payable is $13,000.
The cost of goods sold for next month is expected to be

• A)$29,500.
• B)$30,500.
• C)$50,000.
• D)$30,000.

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Definitions:

Auscultatory Gap

A temporary disappearance of sounds heard over the brachial artery when measuring blood pressure; occurs between the systolic and diastolic pressures.

Systolic Pressure

The maximum arterial pressure during contraction of the heart's left ventricle, commonly the top number in a blood pressure reading.

Diastolic Pressure

The lower measurement of blood pressure, indicating the pressure in the arteries when the heart rests between beats.

Expiration

The expulsion of air from the lungs in breathing.