Seaworthy Company,a merchandising company,has prepared the following sales budget:

Cost of goods sold is budgeted at 50% of sales,and the inventory at the end of February was $34,000.Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold.What is the desired beginning inventory on June 1?

Question

Seaworthy Company,a merchandising company,has prepared the following sales budget:

Cost of goods sold is budgeted at 50% of sales,and the inventory at the end of February was $34,000.Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold.What is the desired beginning inventory on June 1?

Quizplus · Accepted Answer

D)Calculation of beginning inventory on June 1:
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Seaworthy Company,a Merchandising Company,has Prepared the Following Sales Budget