In September 2010, the management of Gerber Company assembles the following data in preparation of budgeted merchandise purchases for the months of October and November.
1. Expected Sales
2. Cost of goods sold is expected to be 68% of sales.
3. Desired ending merchandise inventory is 25% of the next month's cost of goods sold.
4. The beginning inventory at October 1 will be the desired amount.
Instructions
Compute the budgeted merchandise purchases for October and November. Use a columnar format with separate columns for each month.

Question

In September 2010, the management of Gerber Company assembles the following data in preparation of budgeted merchandise purchases for the months of October and November.
1. Expected Sales  
2. Cost of goods sold is expected to be 68% of sales.
3. Desired ending merchandise inventory is 25% of the next month's cost of goods sold.
4. The beginning inventory at October 1 will be the desired amount.
Instructions
Compute the budgeted merchandise purchases for October and November. Use a columnar format with separate columns for each month.

Quizplus · Accepted Answer

The Answer of In September 2010, the management of Gerber Company assembles the following data in preparation of budgeted merchandise purchases for the months of October and November.
1. Expected Sales  
2. Cost of goods sold is expected to be 68% of sales.
3. Desired ending merchandise inventory is 25% of the next month's cost of goods sold.
4. The beginning inventory at October 1 will be the desired amount.
Instructions
Compute the budgeted merchandise purchases for October and November. Use a columnar format with separate columns for each month.

In September 2010, the Management of Gerber Company Assembles the Following