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Grenfell Company is preparing a cash budge for 2010 for purchases of Calvos. Budgeted data are as follows:
Cost of goods sold for the year 2010 .........................$600,000
Accounts payable, 1/1/10 .......................................... 40,000
Inventory, 1/1/10 ................................................... 60,000
Desired inventory, 12/31/10 ....................................... 84,000
Purchases will be made in 12 equal monthly amounts and paid for in the following month. Compute the budgeted cash payment for purchases of Calvos for 2010.
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