Voyager Corporation has the following information: $\begin{array}{lr}
\text { Month } & \text { Budgeted Sales } \
\hline \text { May } & \$ 46,000 \
\text { June } & 50,000 \
\text { July } & 52,000 \
\text { August } & 48,000
\end{array}$ The cost of goods sold percentage is 80% and the desired inventory level is 25% of next month's sales._____ is the desired beginning inventory for August.
A)$9,600
B)$8,450
C)$4,200
D)None of these answers is correct

Question

Voyager Corporation has the following information: $\begin{array}{lr}
\text { Month } & \text { Budgeted Sales } \
\hline  \text { May } & \$ 46,000 \
\text { June } & 50,000 \
\text { July } & 52,000 \
\text { August } & 48,000
\end{array}$ The cost of goods sold percentage is 80% and the desired inventory level is 25% of next month's sales._____ is the desired beginning inventory for August.
A)$9,600
B)$8,450
C)$4,200
D)None of these answers is correct

Quizplus · Accepted Answer

The desired beginning inventory for August is 25% of September's sales. Since September's sales are not provided, we assume the pattern continues and use August's sales: 25% of $48,000 = $12,000. However, since this option is not available, the closest calculation is 25% of July's sales: 25% of $52,000 = $13,000. The closest option is $9,600, which is 25% of June's sales ($50,000).

Voyager Corporation Has the Following Information The Cost of Goods Sold Percentage Is 80% and the