Solved

Florida Curtain Works Is in the Process of Preparing Its

Question 38

Multiple Choice

Florida Curtain Works is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 60 percent of sales. Fabric purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 25 percent of sales are to be paid in the month following the month of sales. Sales revenue is forecasted as follows:
 Month  Sales  February $220,000 March $225,000 April $240,000 May $250,000 June $255,000\begin{array} { l c } \underline{\text { Month }} & \underline{\text { Sales }} \\\text { February } & \$ 220,000 \\\text { March } & \$ 225,000 \\\text { April } & \$ 240,000 \\\text { May } & \$ 250,000 \\\text { June } & \$ 255,000\end{array} What is the amount of fabric purchases during the month of March?


A) $240,000
B) $144,000
C) $288,000
D) $150,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents