21-20

Exercise 21-20 In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of bune 1. 2. 3. 4. Expected sales: June $508,600, July $614,600. 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. Compute the budgeted merchandise purchases for June. (Round answers to the nearest whole dollar, e.g. 5,275.) Prepare the budgeted multiple-step income statement for June through gross profit. GRAND STORES Budgeted Income Statement