Reference no: EM132561344

The James Company, a wholesaler, budgeted the following sales for the indicated months

                                    June 2004,                     July 2004 ,                         Aug 2004.

Sales on account          1800,000                  1,920,000                     2,040,000 respectively and

Cash sales                    240,000                         250,000                          260,000 respectively.

Total sales                      2,040,000,                     2,170,000,                       2,300,000

respectively. All merchandise is marked up to sell at its invoice cost plus 25%. Merchandise inventories at the beginning of each month are at 30% of that month's projected. cost of goads sold.

Question I. The cost of goods sold for the month of June 2004 is anticipated to be

a. 1,632,000

b. 1,428,000

c. 1, 836,000

d. 1,530,000

e. None of these

Question II. Merchandise purchase for July 2004 are anticipated to be:-

a. 1,736,000

b. 1, 926,600

c. 1,767,200

d. 1,658,700

e. None of these