Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the invente purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $165,000. October November December Budgeted Cost of Goods Sold Plus: Desired Ending Inventory 44,000 Inventory Needed Less: Beginning Inventory Required purchases (on 155,000 135,000 145,000 199,000 28,000 171,000 Account) What would be the required purchases (on account) for December?

Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the invente purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $165,000. October November December Budgeted Cost of Goods Sold Plus: Desired Ending Inventory 44,000 Inventory Needed Less: Beginning Inventory Required purchases (on 155,000 135,000 145,000 199,000 28,000 171,000 Account) What would be the required purchases (on account) for December?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 2CMA

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