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JT Department Store Expects to Generate the Following Sales for the Next

Question 105

Multiple Choice

JT Department Store expects to generate the following sales for the next three months: JT Department Store expects to generate the following sales for the next three months: JT's cost of gods sold is 60% of sales dollars. At the end of each month, JT wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should JT plan to purchase in August? A) $257,400 B) $314,600 C) $352,800 D) $327,800 JT's cost of gods sold is 60% of sales dollars. At the end of each month, JT wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should JT plan to purchase in August?


A) $257,400
B) $314,600
C) $352,800
D) $327,800

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