In May 2002, the budget committee of Sherrick Stoics assembles the following data in preparation ol budgeted merchandise purchases lor the month ol June. I Expected sales: June \($500,000\). July \($600,000\). 2. Cost of goods sold is expected to be 65% of sales. 3. Desired ending merchandise inventory is 40% ol the following (next) month's cost ol goods sold. 4. The beginning inventory at June I will be the desired amount

Instructions

(a) Compute the budgeted merchandise purchases for June.

(b) Prepare the budgeted income statement for June through gross profit on sales.