In September 2016, the management of Rye Company assembles the following data in preparation of...
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Accounting
In September 2016, the management of Rye Company assembles the following data in preparation of budgeted merchandise purchases for the months of October and November.
1.
Expected Sales
October
$1,500,000
November
2,100,000
December
2,700,000
2.
Cost of goods sold is expected to be 70% 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.
Compute the budgeted merchandise purchases for October and November.
RYE COMPANY Merchandise Purchases Budget For the Months of October and November, 2016 October November Less
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