A department store has budgeted cost of sales of $36 000 for its men's suits in March. Management also wants to have $15 000 of men's suits in inventory at the end of March to prepare for the summer season. Beginning inventory of men's suits for March is expected to be $9 000. What dollar amount of men's suits should be purchased in March?
A)$60 000
B)$51 000
C)$45 000
D)$42 000

Question

Quizplus · Accepted Answer

Purchases = Cost of goods sold + Ending inventory - Beginning inventory= $36,000 + $15,000 - $9,000= $42,000

A Department Store Has Budgeted Cost of Sales of $36