Use the information below to answer the following question(s).
Peabody Enterprises prepared the following sales budget:

The expected gross profit rate is 40% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold.
-What are the total purchases budgeted for May at Peabody Enterprises?

Question

Use the information below to answer the following question(s).
Peabody Enterprises prepared the following sales budget:
  
The expected gross profit rate is 40% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold.
-What are the total purchases budgeted for May at Peabody Enterprises?

Quizplus · Accepted Answer

The total purchases budgeted for May at Peabody Enterprises is $7,440. This is calculated based on the company's budgeted purchases plan or schedule, which would have been provided in the context of the problem.

Use the Information Below to Answer the Following Question(s)