Brief Exercise 9-10 Moore Wholesalers is preparing its merchandise purchases bud

Question

Brief Exercise 9-10

Moore Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $415,900 for April and $490,000 for May. Cost of goods sold is expected to be 65% of sales. The company’s desired ending inventory is 21% of the following month’s cost of goods sold.

Compute the required purchases for April. (Round intermediate calculations and final answer to 0 decimal places, e.g. 1,255.)

For the year/quarter/month of apr

Add/less

Add/Less

For the year/quarter/month of apr

Add/less

Add/Less

Explanation / Answer

Particulars April Sales 415900 Cost Of goods sold(415900*65%) 270335 Desired Ending Inventory(490000*65%*21%) 66885 Purchases Required 337220

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