Question

The Rob Wallace Corporation has a sales budget for next month of $400,000. Cost of goods sold is expected to be $250,000. All goods are paid for in the month following their purchase. The beginning inventory of merchandise is $16,000, and an ending inventory of $12,000 is desired. Beginning accounts payable is $52,000. How much merchandise inventory will The Rob Wallace Corporation need to purchase next month

Answer 1

Answer: $246000

Explanation:

The amount of merchandise inventory that The Rob Wallace Corporation need to purchase next month will be:

Expected Cost of goods sold = $250000

Less: Beginning Inventory = $16000

Add: Desired Ending Inventory = $12000

The, the Required Purchase of merchandise inventory will be:

= $250000 + $12000 - $16000

= $246000