Norton Company prepared the following sales budget:
The expected gross profit rate is 40% and the finished goods inventory at the end of February was $36,000. Desired inventory levels at the end of the month are 30% of the next month's cost of goods sold. What is the desired beginning inventory on June 1?

Question

Norton Company prepared the following sales budget:
 The expected gross profit rate is 40% and the finished goods inventory at the end of February was $36,000. Desired inventory levels at the end of the month are 30% of the next month's cost of goods sold. What is the desired beginning inventory on June 1?

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The Answer of Norton Company prepared the following sales budget:
 The expected gross profit rate is 40% and the finished goods inventory at the end of February was $36,000. Desired inventory levels at the end of the month are 30% of the next month's cost of goods sold. What is the desired beginning inventory on June 1?

Norton Company Prepared the Following Sales Budget