Seaworthy Company,a merchandising company,has prepared the following sales budget: Cost of goods sold is budgeted at 40% of sales,and the inventory at the end of February was $34,000.Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold.What is the desired beginning inventory on June 1?

Question

Seaworthy Company,a merchandising company,has prepared the following sales budget:  Cost of goods sold is budgeted at 40% of sales,and the inventory at the end of February was $34,000.Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold.What is the desired beginning inventory on June 1?

Quizplus · Accepted Answer

Calculation of beginning inventory on June 1: 11eb0def_788d_41be_9431_0d632a4cfe1b_TB6702_00

Seaworthy Company,a Merchandising Company,has Prepared the Following Sales Budget