10. The budget committee of SSRC Company collects the following data for its Irish Store in preparing budgeted income statements for May and June 2021. Sales for May are expected to be $800,000. Sales in June and July are expected to be 10% higher than the preceding month. Cost of goods sold is expected to be 75% of sales. Company policy is to maintain ending merchandise inventory at 20% of the following months cost of goods sold. Operating expenses are estimated to be: Sales salaries $30,000 per month Advertising 5% of monthly sales Delivery expense 3% of monthly sales Sales commissions 4% of monthly sales Rent expense $5,000 per month Depreciation $800 per month Utilities $600 per month Insurance $500 per month Income taxes are estimated to be 30% of income from operations. Instructions: (a) Prepare the merchandise purchases budget for each month in columnar form. (b) Prepare budgeted income statements for each month in columnar form. Show in the statements the details of cost of goods sold.