MC Qu. 81 Brownsville Novelty Store prepared the.. Brownsville Novelty Store pre

Question

MC Qu. 81 Brownsville Novelty Store prepared the.. Brownsville Novelty Store prepared the following budget information for the month of May - Sales are budgeted at $360,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month. Inventory was $84,000 on April 30; an inventory increase of $12,000 is planned for May 31 All inventory is marked to sell at cost plus 50 percent Estimated cash disbursements for selling and administrative expenses for the month are $48,000 Depreciation for May is projected at $6,000 Brownsville's budgeted cost of inventory purchases for May is: O $120.000. O $180000 O $198,000 O $252,000. $240,000 References Multiple Choice MC Qu. 81 Brownsville Novelty Store prepared the

Explanation / Answer

Calculate inventory purchase for may :

so answer is d) $252000

Sales 360000 Cost of goods sold 240000 Add: Desired ending inventory 96000 336000 Less: Beginning inventory -84000 Inventory purchase 252000

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