Haggle Corporation, a wholesaler, has a sales budget for next month of $400,000.Cost of units sold is expected to be 35% of sales.All units are paid for in the month following purchase.The beginning inventory of units is $10,000, and an ending amount of $12,000 is desired.Beginning accounts payable is $76,000. The cost of units sold for next month is expected to be _____.
A)$220,000
B)$172,000
C)$162,000
D)$140,000

Question

Quizplus · Accepted Answer

The cost of units sold is expected to be 35% of sales, so for sales of $400,000, the cost of units sold would be $400,000 * 35% = $140,000.

Haggle Corporation, a Wholesaler, Has a Sales Budget for Next