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In September 2016, the budget committee of George Company assembles the following data:
(1). Expected Sales
October $2,000,000
November 1,900,000
December 1,700,000
(2). Cost of goods sold is expected to be 50% of sales.
(3). Desired ending merchandise inventory is 20% of the next month's cost of goods sold.
(4). The beginning inventory at October 1 will be the desired amount.
How much inventory will George Company purchase for October 2016?
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