Question

Good morning,

I am having an issue figuring out the second part of my assignment this week. Any help is appreciated. Thank you in advance.

Exercise 21-20 (Part Level Submission) In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $517,600, July $608,600. 2. Cost of goods sold is expected to be 75% of sales. 3. Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold. 4. The beginning inventory at June 1 will be the desired amount. (a) Your answer is correct. Compute the budgeted merchandise purchases for June. (Round answers to the nearest whole dollar, e.g. 5,275.) GRAND STORES Merchandise Purchases Budget For the Month Ending June 30, 2017 - Budgeted Cost of Goods Sold 388200 Add y Desired Ending Merchandise Inventory 136935 Total Materials Required 525135 Beginning Merchandise Inventory 116460 TRequired Merchandise Purchases 408675

Answer 1

GRAND STORE Budgeted Income statement for the month of June 30, 2017 A MOUNT (8) SALES' $5,17,600 Less; Beginning Menebandise 1,16,460 less Menehandise punehase 4,08,615 (1535) [legestive] Add: Ending Medehandise 4.36,935 GROSS PROFI. 1 1 ,29,900 Anrentoning Inventory FOR particulans SALES Cast of noods sold (519600 967.) $ 5,17.600 Les 8,87,200 GROSS PROFIT & 1,29 400 NOTE! Beginning Merchandise = 307. of cons of Tune (388200 X301) - 1.16.460. Ending Merchandise - 30% of cons of July =(456950 Y 307) 1,36,935