21-20

CES 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. 2. Expected sales: June $522,100, July $618,500. Cost of goods sold is expected to be 75% of sales. Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold. The beginning inventory at June 1 will be the desired amount. 3. (a) Your answer is partially correct. Try again. ady 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 391,575 Add Desired Ending Merchandise Inventory 185,550 Total Materials Required 577,125 Less Beginning Merchandise Inventory 117,472 Required Merchandise Purchases 413265 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT Part (b) Prepare the budgeted multiple-step income statement for June through gross profit. Study GRAND STORES Budgeted Income Statement $ $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT