Coronet Company provided the following information related to its inventory sales and purchases for December 2013 and the first quarter of 2014Feb. 2014Dec. 2013Jan. 2014Mar. 2014(Budgeted)(Actual)(Budgeted)(Budgeted)Cost of goodssold\$88,000\$68,000\$38,000\$58,000Desired ending inventory levels are 26% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February 2014 would be:Multiple Choice\$65,800\$80,200.\$87,700.\$108,040

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Step 1

The equation for material inventory is Opening Stock+Purchases=Cost of goods sold+closing Inventory

So, Purchases= Cost of goods sold+closing Inventory-Opening stock

Step 2

The computation of closing inventory, opening inventory and...

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