BW Department Store expects to generate the following sales

BW Department Store expects to generate the following sales for the next three months: July August September Expected sales $490,000 $540,000 $580,000 BW\'s cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 25% of the following month\'s expected cost of goods sold. What dollar amount of merchandise inventory should BW plan to purchase in August? A) $330,000 B) $327,800 C) $314,600 D) $352,800

Solution

The Answer is \"A\"

A. $330000

Calculation for Closing Inventory :-

Calculation for Purchases Amount of August :-