Lee Retailing Company prices its products by adding 30% to its cost. Lee anticipates sales of $1,072,500 in July, $1,092,000 in August, and $936,000 in September. Lee's policy is to have hand enough inventory at the end of the month to cover 25% of the next month's sales. What will be the cost of the inventory that Lee should budget for purchase in August? Select one: O O O a. $840,000 b. $810,000 c. $1,020,000 d. $764,400

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter8: Budgeting
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Lee Retailing Company prices its products by adding 30% to its cost. Lee anticipates sales of $1,072,500 in July, $1,092,000 in August, and $936,000 in September. Lee's policy is to have on
hard enough invertory at the end of the month to cover 25% of the next month's sales. What will be the cost of the inventory that Lee should budget for purchase in August?
Select one:
O
O
O
a. $840,000
b. $810,000
c. $1,020,000
d. $764,400
Transcribed Image Text:Lee Retailing Company prices its products by adding 30% to its cost. Lee anticipates sales of $1,072,500 in July, $1,092,000 in August, and $936,000 in September. Lee's policy is to have on hard enough invertory at the end of the month to cover 25% of the next month's sales. What will be the cost of the inventory that Lee should budget for purchase in August? Select one: O O O a. $840,000 b. $810,000 c. $1,020,000 d. $764,400
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