Montel Company's July sales budget shows sales of $540,000. The company budgets beginning merchandise inventory of $62,000 and ending merchandise inventory of $38,000 for July. Cost of goods sold is 40% of sales. Determine the budgeted cost of merchandise purchases for July. Hint: Use the relation (Beginning Inventory + Purchases – Cost of Goods Sold = Ending Inventory) to solve for purchases. Budgeted Cost of Merchandise Purchases

Montel Company's July sales budget shows sales of $540,000. The company budgets beginning merchandise inventory of $62,000 and ending merchandise inventory of $38,000 for July. Cost of goods sold is 40% of sales. Determine the budgeted cost of merchandise purchases for July. Hint: Use the relation (Beginning Inventory + Purchases – Cost of Goods Sold = Ending Inventory) to solve for purchases. Budgeted Cost of Merchandise Purchases

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 3CMA: Ming Company has budgeted sales at 6,300 units for July, and desires to have 590 good units on hand...

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