WU Corporation, a merchandising company: Budgeted Sales
The following are budgeted data for the WU Corporation, a merchandising company: Budgeted Sales (at retail) January $300,000 February $340,000 March $400,000 April $350,000 Cost of goods sold as a percentage of sales 60% Desired ending inventory 75% of next month sales Assuming that the WU Corporation had inventory on hand of $70,000 (at cost) on January 1, calculate the purchases needed to support January sales.
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