The Damron Company is preparing its budget of purchases of inventory. The policy of the company is to maintain the equal final inventory to 25% following of the cost of the sold sales of the following month. For October the budgeted cost of the sold sales is of $ 200,000.
July aug. Sept.
sold merchandise 150,000 180.000 190.000
final inventory ? ? ?
Needed inventory ? ? ?
less: beginning inventory 37,500 ? ?
Required purchase ? ? ?
a) Completes the spaces in blank (?) in the budget of the inventory of the purchases.
b) Which is the amount of the inventory of the company must inform in the state into situation pro forms at the end of trimester?
This solution completes the budget table of inventory purchases and determines the amount of the inventory the company must inform the state at the end of the trimester.