Calculate the budgeted merchandise purchases

Reference no: EM13121880

Q. Sound Check, a merchandising company specializing in home computer or speakers, budgets its monthly cost of goods sold to equal 70% of sales. Its inventory policy calls for ending inventory in each month to equal 20% of the next month's budgeted cost of goods sold. All purchases are on credit, and 10% of the purchases in a month is paid for in the same month. Another 20% is paid for during the first month after purchase, and the remaining 70% is paid for in the second month after purchase. The following sales budgets are set: July, $500,000; August, $440,000; September, $470,000; October, $425,000; and November, $415,000.

Calculate the budgeted merchandise purchases for July, August, September, and October

Reference no: EM13121880

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