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Caplico Company Has Prepared the Following Sales Budget

Question 122

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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 $35,000.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) $46,400 B) $26,400 C) $130,200 D) $27,840
Cost of goods sold is budgeted at 60% of sales,and the inventory at the end of February was $35,000.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) $46,400
B) $26,400
C) $130,200
D) $27,840

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