7-28 Purchases and Cost of Goods Sold Popeil Products, a wholesaler of fishing equipment, budgeted the following sales for the indicated months: June 20X8 July 20X8 August 20X8 Sales on account $1,850,000 $1,920,000 $1.910,000 Cash sales 130.000 156.000 274.000 Total sales $1.980,000 $2.076,000 $2.184.000 All merchandise is marked up to sell at its invoice cost plus 20%. Target merchandise inventories at the beginning of each month are 25% of that month's projected cost of goods sold. 1. Compute the budgeted cost of goods sold for the month of June 20X8. 2. Compute the budgeted merchandise purchases for July 20X8