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The following are budgeted data for the Bingham Company, a merchandising company:
Budgeted Sales (at retail)January $300,000February $340,000March $400,000April $350,000
Cost of goods sold as a percentage of sales is 60%. The desired ending inventory is 75% of next month's sales.
Assuming that the Bingham Company had inventory on hand of $70,000 (at cost) on January 1, the purchases for January (at cost) would be:A) $180,000B) $250,000C) $263,000D) $110,000
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