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 ma 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 .All inventory is marked to sell at cost plus 50 percent. . Estimated cash disbursements for selling and administrative expenses for the month are $48,0 .Depreciation for May is projected at $6,000 Brownsville's budgeted cost of inventory purchases for May is: o $120,000. O $180,000 O $198,000 O $252000 O $240000

Explanation / Answer

Answer is $252,000

Explanation

Cost of goods sold is $240,000

($360,000*100/150)

Planned increase in inventory $12,000

Budgeted cost of inventory purchases $252,000

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.