Exam 19: Introduction to Managerial Accounting and the Master Budget

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A department store has budgeted cost of sales of $36 000 for its men's suits in March. Management also wants to have $15 000 of men's suits in inventory at the end of March to prepare for the summer season. Beginning inventory of men's suits for March is expected to be $9 000. What dollar amount of men's suits should be purchased in March?

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