Freighters Inc. has the following budgeted figures: $\begin{array}{ccccc}
& \text { Jan } & \text { Feb } & \text { Mar } & \text { April } \
\text { Sales } & \$ 50,000 & \$ 65,000 & \$ 80,000 & \$ 95,000
\end{array}$
$\begin{array}{ll}
\text { Cost of goods sold } & 60 \% \text { of sales } \
\text { Required ending inventory } & \$ 15,000+25 \% \text { of sales of next month } \
\text { Inventory on hand on Jan lst } & \$ 27,500
\end{array}$
- Calculate the ending merchandise inventory for the month of March.

Question

Freighters Inc. has the following budgeted figures: $\begin{array}{ccccc} 
& \text { Jan } & \text { Feb } & \text { Mar } & \text { April } \
\text { Sales } & \$ 50,000 & \$ 65,000 & \$ 80,000 & \$ 95,000
\end{array}$
$\begin{array}{ll}
\text { Cost of goods sold } & 60 \% \text { of sales } \
\text { Required ending inventory } & \$ 15,000+25 \% \text { of sales of next month } \
\text { Inventory on hand on Jan lst } & \$ 27,500
\end{array}$
- Calculate the ending merchandise inventory for the month of March.

Quizplus · Accepted Answer

The ending inventory for March is calculated as $15,000 + 25% of April's sales ($95,000), which equals $15,000 + $23,750 = $38,750.

Freighters Inc - Calculate the Ending Merchandise Inventory for the Month of