Respuesta :
Answer:
The budgeted cost of merchandise purchases is $527,000
Explanation:
The cost of merchandise purchases for May can be computed by first of all calculating the costs of goods sold,then by deducting closing inventory from costs of good sold and adding opening inventory,just like working backwards.
Sales $870,000
less margin($870,000*40%) ($348,000)
Cost of goods sold $522,000
Cost of goods sold =opening stock+purchases-closing stock
purchases=costs of goods sold+closing stock-opening stock
closing stock is $52000
opening stock is $47000
purchases =$522000+$52000-$47000
purchases= $527,000
Answer:
$527,000
Explanation:
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
Gross margin is the difference between sales and cost of goods sold expressed as a percentage of sales.
Hence
Gross profit = 40% * $870,000
= $348,000
Cost of goods sold = $870,000 - $348,000
= $522,000
$47,000 + purchases - $522,000 = $52,000
Purchases = $52,000 + $522,000 - $47,000
= $527,000
