Olson Company has a sales budget for next month of $50,000.Cost of goods sold is expected to be 60 percent of sales.All goods are purchased in the month used and paid for in the month following their purchase.The beginning inventory of merchandise is $1,500 and an ending inventory of $2,000 is desired.Beginning accounts payable is $13,000.
-How much merchandise inventory will Olson Company need to purchase next month?
A) $29,000
B) $29,500
C) $30,000
D) $30,500

Question

Olson Company has a sales budget for next month of $50,000.Cost of goods sold is expected to be 60 percent of sales.All goods are purchased in the month used and paid for in the month following their purchase.The beginning inventory of merchandise is $1,500 and an ending inventory of $2,000 is desired.Beginning accounts payable is $13,000. 
-How much merchandise inventory will Olson Company need to purchase next month?
A) $29,000
B) $29,500
C) $30,000
D) $30,500

Quizplus · Accepted Answer

The Answer of Olson Company has a sales budget for next month of $50,000.Cost of goods sold is expected to be 60 percent of sales.All goods are purchased in the month used and paid for in the month following their purchase.The beginning inventory of merchandise is $1,500 and an ending inventory of $2,000 is desired.Beginning accounts payable is $13,000. 
-How much merchandise inventory will Olson Company need to purchase next month?
A) $29,000
B) $29,500
C) $30,000
D) $30,500

Olson Company Has a Sales Budget for Next Month of $50,000.Cost