Executive officers of Weston Company are wrestling with their
budget for the next year. The following are two different sales
estimates provided by two difference sources.
| Source of|
WestonAc??cs past experience indicates
that cost of goods sold is about 60 percent of sales revenue. The
company tries to maintain 10 percent of the next quarterAc??cs expected
cost of goods sold as the current quarterAc??cs ending inventory. This
yearAc??cs ending inventory is $30,000. Next yearAc??cs ending inventory is
budgeted to be $36,000.
Prepare an inventory purchases budget using the sales managerAc??cs
Prepare an inventory purchases budget using the marketing
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