Seaworthy Company, a merchandising company, has prepared the following sales budget: Month Budgeted Sales Мarch $200,000.00 April May June Cost of goods sold is budgeted at 50% of sales, and the inventory at the end of February was $34,000.00. Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold. What is the desired beginning inventory on June 1? 202,000 238,000 256,000 O A. $12,800.00 O B. $118,000.00 OC. $11,900.00 O D. $25,600.00

Seaworthy Company, a merchandising company, has prepared the following sales budget: Month Budgeted Sales Мarch $200,000.00 April May June Cost of goods sold is budgeted at 50% of sales, and the inventory at the end of February was $34,000.00. Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold. What is the desired beginning inventory on June 1? 202,000 238,000 256,000 O A. $12,800.00 O B. $118,000.00 OC. $11,900.00 O D. $25,600.00

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1EB: Lovely Wedding printing is budgeting sales of 32,000 units and already has 4,000 in beginning...

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