The expected gross profit rate is 30 and the inventory at


Question - Sander Enterprises prepared the following sales budget:

Month Budgeted Sales

March - 9,000

April - 12,000

May - 15,000

June - 14,000

The expected gross profit rate is 30% and the inventory at the end of February was $9,000. Desired inventory levels at the end of the month are 30% of the next month's cost of goods sold.

What are the total purchases budgeted for May?

A. 10,290

B. 10,500

C. 10,710

D. 13,650

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Accounting Basics: The expected gross profit rate is 30 and the inventory at
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