The Pinsky Company has the following information available:
$\begin{array}{ll}\text { Month }&\text { Budgeted Purchases }\
\text { March } & \$ 150,000 \
\text { April } & 153,000 \
\text { May } & 151,000 \
\text { June } & 254,500 \
\text { July } & 252,500
\end{array}$
The gross profit rate is 40% and the desired ending inventory level is 20% of the next month's cost of sales.
Required:
Prepare a purchases and cost of goods sold budget for April,May and June.

Question

The Pinsky Company has the following information available:
 $\begin{array}{ll}\text { Month }&\text { Budgeted Purchases }\
\text { March } & \$ 150,000 \
\text { April } & 153,000 \
\text { May } & 151,000 \
\text { June } & 254,500 \
\text { July } & 252,500
\end{array}$ 
The gross profit rate is 40% and the desired ending inventory level is 20% of the next month's cost of sales.
Required:
Prepare a purchases and cost of goods sold budget for April,May and June.

Quizplus · Accepted Answer

The Answer of The Pinsky Company has the following information available:
 $\begin{array}{ll}\text { Month }&\text { Budgeted Purchases }\
\text { March } & \$ 150,000 \
\text { April } & 153,000 \
\text { May } & 151,000 \
\text { June } & 254,500 \
\text { July } & 252,500
\end{array}$ 
The gross profit rate is 40% and the desired ending inventory level is 20% of the next month's cost of sales.
Required:
Prepare a purchases and cost of goods sold budget for April,May and June.

The Pinsky Company Has the Following Information Available The Gross Profit Rate Is 40% and the Desired Ending