Norton Company prepared the following sales budget: Cost of goods sold is budgeted at 60% of sales, and the inventory at the end of February was $36,000. Desired inventory levels at the end of each month are 30% of the next month's cost of goods sold. How much are the budgeted purchases for the month of April?

Question

Norton Company prepared the following sales budget:  Cost of goods sold is budgeted at 60% of sales, and the inventory at the end of February was $36,000. Desired inventory levels at the end of each month are 30% of the next month's cost of goods sold. How much are the budgeted purchases for the month of April?

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The Answer of Norton Company prepared the following sales budget:  Cost of goods sold is budgeted at 60% of sales, and the inventory at the end of February was $36,000. Desired inventory levels at the end of each month are 30% of the next month's cost of goods sold. How much are the budgeted purchases for the month of April?

Norton Company Prepared the Following Sales Budget: Cost of Goods