Solved

Wallace Company Provides the Following Data for Next Year

Question 96

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 30% of sales.Inventory at the end of December is $30,600 and target ending inventory levels are 10% of next month's sales,stated at cost. What is the amount of purchases budgeted for February? A) $36,180 B) $77,700 C) $79,310 D) $97,580
The gross profit rate is 30% of sales.Inventory at the end of December is $30,600 and target ending inventory levels are 10% of next month's sales,stated at cost.
What is the amount of purchases budgeted for February?


A) $36,180
B) $77,700
C) $79,310
D) $97,580

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q10: The Japanese use kaizen to mean financing

Q17: Cost of goods sold budget is calculated

Q60: The _ is a component of financial

Q64: Budgets are sometimes called targets or commitments

Q69: J & S Manufacturing expects to produce

Q74: Budgeting based on cost for specific activities

Q92: First Class,Inc. ,expects to sell 26,000 pool

Q98: Budgets incorporate managements goals and<br>A) are a

Q100: Listed below are elements of the master

Q172: A company using responsibility accounting system decides