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Wallace Company Provides the Following Data for Next Year

Question 6

Multiple Choice

Wallace Company provides the following data for next year:
Wallace Company provides the following data for next year: The gross profit rate is 35% of sales. Inventory at the end of December is $29,600 and target ending inventory levels are 10% of next month's sales, stated at cost. What is the amount of purchases budgeted for January? A) $70,980 B) $55,420 C) $78,000 D) $85,020
The gross profit rate is 35% of sales. Inventory at the end of December is $29,600 and target ending inventory levels are 10% of next month's sales, stated at cost.
What is the amount of purchases budgeted for January?


A) $70,980
B) $55,420
C) $78,000
D) $85,020

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