A Retailer Using the Basic Stock Method Wants Its Average

question 98

Multiple Choice

A retailer using the basic stock method wants its average monthly stock to equal 20 percent of its average monthly sales.Next year's sales are forecast at $2,400,000.Planned sales for January are $340,000.What is the January 1 planned inventory value (at retail) using the basic stock method?

• A)$380,000
• B)$400,000
• C)$432,000
• D)The answer cannot be determined from the information provided.

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