Reference no: EM132110429

Question - Texas Curtain Works is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Fabric purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 25 percent of sales are to be paid in the month following the month of sales. Sales revenue is forecasted as follows:

Month - Sales

February $440,000

March $450,000

April $480,000

May $500,000

June $510,000

What is the amount of fabric purchases during the month of March?

$480,000

$336,000

$288,000

$300,000