Budgeted sales of the South Side Sundae Shop for the first quarter of the year...
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Accounting
Budgeted sales of the South Side Sundae Shop for the first quarter of the year are as follows:
January $25,000
February 30,000
March 34,000
The cost of sales averages 40 percent of sales revenue and management desires ending inventories equal to 25 percent of the following months sales revenue.
Assuming the January 1 inventory is $6,250, the January purchases budget is: Select one:
A. $11,250
B. $21,000
C. $15,500
D. $ 8,000
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