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    Dollar amount of Inventory

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    MJ Department Store expects to generate the following sales figures for the next three months:

    July August September
    Expected sales $480,000 $560,000 $600,000

    MJ's gross profit rate is 45% of sales dollars. At the end of each month, MJ wants a merchandise inventory balance equal to 30% of the following month's expected sales, stated at cost. What dollar amount of merchandise inventory should MJ plan to purchase in August?

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    https://brainmass.com/business/inventory-management/dollar-amount-inventory-219575

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    MJ Department Store expects to generate the following sales figures for the next three months:

    July August September
    Expected ...

    Solution Summary

    This provides the steps to calculate the Dollar amount of Inventory

    $2.19