Smiths Company provides the following data for next year: Month Budgeted Sales...
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Accounting
Smiths Company provides the following data for next year:
Month Budgeted Sales
January $120,000
February 108,000
March 132,000
April 144,000
The gross profit rate is 35% of sales. Inventory at the end of December is $21,600 and target ending inventory levels are 20% of next month's sales, stated at cost.
What is the amount of purchases budgeted for February?
A) $95,160
B) $73,320
C) $70,200
D) $32,214
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