Caplico Company has prepared the following sales budget:

Cost of goods sold is budgeted at 60% of sales,and the inventory at the end of February was $35,000.Desired inventory levels at the end of each month are 20% of the next month's cost of goods sold.What is the desired beginning inventory on June 1?

Question

Caplico Company has prepared the following sales budget:

Cost of goods sold is budgeted at 60% of sales,and the inventory at the end of February was $35,000.Desired inventory levels at the end of each month are 20% 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: 11ea8a42_4fa0_473c_8b44_011573d2de11_TB5024_00

Caplico Company Has Prepared the Following Sales Budget