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Caine had a starting inventory balance of 3,600 on 1st April and a starting balance in accounts payable of 14,800. The company desires to maintain an ending inventory balance equal to 10 percent of the next periods cost of goods sold. Caine makes all purchases on account. The company pays 50 percent of accountings payable in the month of purchase and the remaining 50 percent in the month subsequent purchase.
Budgeted cost of goods sold April 60,000, May 70,000, June 80,000, July 86,000
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