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Skyland Company wants an ending inventory each month equal to 24% of that month's cost of goods sold. Cost of goods sold for February is projected at $89,000. Ending inventory at the end of January was $30,000. Based on this information, purchases for February would be: a) $59,000 b) $80,360 c) $97,640 d) $67,640

Skyland Company wants an ending inventory each month equal to 24% of that month's cost of goods sold. Cost of goods sold for February is projected at $89,000. Ending inventory at the end of January was $30,000. Based on this information, purchases for February would be: a) $59,000 b) $80,360 c) $97,640 d) $67,640

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Skyland Company wants an ending inventory each month equal to 24% of that month's cost of goods sold. Cost of goods sold for February is projected at $89,000. Ending inventory at the end of January was $30,000. Based on this information, purchases for February would be: a) $59,000 b) $80,360 c) $97,640 d) $67,640
Transcribed Image Text:Skyland Company wants an ending inventory each month equal to 24% of that month's cost of goods sold. Cost of goods sold for February is projected at $89,000. Ending inventory at the end of January was $30,000. Based on this information, purchases for February would be: a) $59,000 b) $80,360 c) $97,640 d) $67,640
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