1. Mannheim GmbH has adopted the following policies regarding merchandise purchases and inventory. At the end of any month, the inventory should be 13,000 plus 90% of the cost of goods to be sold during the following month. The cost of merchandise sold averages 50% of sales. Purchase terms are generally net, 30 days. A given month's purchases are paid as follows: 30% during that month and 70% during the following month. Purchases in May had been C180.000 and the inventory on May 31 was higher than planned at C250,000. The manager was upset because the inventory was too high. Sales are expected to be June, C260,000; July, C280,000; August (390,000: and September, (360,000. Read the requirements Requirement 1. Compute the amount by which the inventory on May 31 exceeded the company's policies. Inventory on May 31 exceeded the company's policies by 120000 Requirement 2. Prepare budget schedules for June July, and August for purchases and for disbursements for purchases. Begin by preparing the budget schedule for purchases for June July, and August. Purchases budget June July August Ending inventory target Plus: Cost of goods sold Total Inventory needed Less: Beginning inventory Purchases Now prepare the budget schedule for disbursements for purchases. Disbursements for purchases June July August 70% of last month's purchases 30% of this month's purchases Disbursements for purchases 1: Requirements 1. Compute the amount by which the inventory on May 31 exceeded the company's policies. Prepare budget schedules for June, July, and August for purchases and for disbursements for purchases