4 Assignments: SP18:INT Connect xC Search Textbook SclutiorReview of Chapter 6 w

Question

4 Assignments: SP18:INT Connect xC Search Textbook SclutiorReview of Chapter 6 w/ x X CSecure https//newconnect.mheducatio connect.html Comprehensive Final Exam: Part 2 (Multiple Choice) Help Save& Exit Submit Saved Sales are budgeted at $460,000 for November, $440,000 for December, and $430,000 for January Collections are expected to be 45% in the month of sale and 55% in the month following the sale * The cost of goods sold is 80% of sales. · The company would like maintain ending merchandise inventories equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase Other monthly expenses to be paid in cash are $25,200. Monthly depreciation is $16,200. . Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,200 accumulated depreciation Total assets $ 21,200 71,200 220,800 1,095,200 $1,488,408 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 255,200 821,200 332,808 $1,408,400 Mc KPrev 34 of 50Next > O Type here to search 5:00 PM 4/30/2018

Explanation / Answer

Cost of december purchase = Cost of goods sold of december+Desired ending inventory-Beginning inventory

= (440000*80%)+(430000*80%*60%)-(440000*80%*60%)

Cost of december purchase = 347200

so answer is a) 347200

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