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Caplico Company Has Prepared the Following Sales Budget: Cost

Question 26

Multiple Choice

Caplico Company has prepared the following sales budget: Caplico Company has prepared the following sales budget: Cost of goods sold is budgeted at 60% of sales and the inventory at the end of February was $36,000. Desired inventory levels at the end of each month are 20% of the next month's cost of goods sold. What is the desired beginning inventory on June 1? A) $52,000 B) $26,400 C) $43,200 D) $31,200 Cost of goods sold is budgeted at 60% of sales and the inventory at the end of February was $36,000. Desired inventory levels at the end of each month are 20% of the next month's cost of goods sold. What is the desired beginning inventory on June 1?


A) $52,000
B) $26,400
C) $43,200
D) $31,200

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