None The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $13,400. Assumethat all purchases are made on account. Prepare an inventory purchases budget.Inventory Purchases BudgetOctoberNovemberDecemberBudgeted cost of goods sold "Plus Desired ending inventoryInventory needed13,4000of13,4000Less Beginning inventoryRequired purchases (on account)$0S0 $13,400

Answer image:Workings:Jordan CompanyPro Forma Income StatementFor the quarter ended December 31,…

Answered: The cost of goods sold is 60 percent of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 2CMA

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