JT Department Store expects to generate the following sales for the next three months: JT's cost of gods sold is 60% of sales dollars. At the end of each month, JT wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should JT plan to purchase in August?
A)$257,400
B)$314,600
C)$352,800
D)$327,800

Question

JT Department Store expects to generate the following sales for the next three months:  JT's cost of gods sold is 60% of sales dollars. At the end of each month, JT wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should JT plan to purchase in August?
A)$257,400 
B)$314,600 
C)$352,800 
D)$327,800

Quizplus · Accepted Answer

The Answer of JT Department Store expects to generate the following sales for the next three months:  JT's cost of gods sold is 60% of sales dollars. At the end of each month, JT wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should JT plan to purchase in August?
A)$257,400 
B)$314,600 
C)$352,800 
D)$327,800

JT Department Store Expects to Generate the Following Sales for the Next