Michael Company Has a Sales Budget for Next Month of $300,000.Cost

Multiple Choice

Michael Company has a sales budget for next month of $300,000.Cost of goods sold is expected to be 50% of sales.All units are paid for in the month following purchase.The beginning inventory is $10,000 and an ending inventory of $12,000 is desired.Beginning accounts payable is $76,000.The purchases for next month are ________.

A) $138,000
B) $140,000
C) $150,000
D) $152,000