Teleco Corp.is preparing its budget for the first quarter of 2018.The following data is provided: April's cost of goods sold is $32,000.The amount of Merchandise Inventory to be shown on the budgeted balance sheet at March 31 would be ________.

Question

Teleco Corp.is preparing its budget for the first quarter of 2018.The following data is provided:  April's cost of goods sold is $32,000.The amount of Merchandise Inventory to be shown on the budgeted balance sheet at March 31 would be ________.

Quizplus · Accepted Answer

Cost of goods sold = (32,000 × 25%) + 5000 = $13,000