Gamma Corp. is preparing their budget for the 1^st quarter of 2015. The following data is provided: $$\begin{array} { | l | r | r | r | } \hline \text { Inventory, Purchases and COGS Budget } & { \text { Jan } } & { \text { Feb } } &{ \text { Mar } } \ \hline \text { Cost of goods sold (a) } & \$ 30,000 & \$ 28,500 & \$ 22,500 \ \hline \text { Desired ending inventory(b) } & \underline { 10,700 } & \underline { 9,500 } & \underline { 9,800 } \ \hline \text { Total inventory required } & 40,700 & 38,000 & 32,300 \ \hline \text { less Beginning inventory } & \underline { - 11,000 } & \underline { - 10,700 } & \underline { - 9,500 } \ \hline \text { Purchases } & 29,700 & 27,300 & 22,800 \ \hline \text { (a) COGS= 75\% of sales } & & & \ \hline \text { (b) } \$ 5,000 + 20 \% \text { of COGS for next month } & & & \ \hline \end{array}$$ The amount of Merchandise Inventory to be shown on the budgeted balance sheet at March 31 would be:

Question

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The desired ending inventory for March is $9,800, which is the amount to be shown on the budgeted balance sheet at March 31.

Gamma Corp The Amount of Merchandise Inventory to Be Shown on the of 2015