Question

The O'Brien Company has the following information available: Month                        Budgeted Sales Jan     

The O'Brien Company has the following information available:

Month                        Budgeted Sales

Jan                                          $150,000

Feb                                            153,000

March                                       151,000

April                                         254,500

May                                          252,500

The gross profit rate is 20% and the desired ending inventory level is 10% of the next month's cost of sales.

Required:

Prepare purchase and cost of goods sold budget for Feb, March, and April.

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